Ella 
During the Asian session on Wednesday, GBP/USD consolidated in a volatile range below the 1.2500 mark. GBP/USD is currently trading around 1.2488, with an intraday decline of 0.01%. Market participants tend to wait and see ahead of the release of UK gross domestic product (GDP) data for July and the much-anticipated US consumer price index (CPI) data. These data may trigger GBP/USD volatility.
Bank of England (BOE) policymaker Catherine Mann said on Monday that it was too early for the central bank to pause raising interest rates and that it would be better for the central bank to raise interest rates if they were too high rather than suspending them too early. . Hawkish comments from the Bank of England governor could stem the pound’s losses and serve as a tailwind for GBP/USD.
In terms of data, the Office for National Statistics announced on Tuesday that the UK unemployment rate in the three months to July was 4.3%, higher than the previous value of 4.2%, in line with market expectations.
Technically, GBP/USD is holding below the 50 and 100 hour exponential moving averages (EMA) on the hourly chart, which means further downside is possible for GBP/USD. Meanwhile, the Relative Strength Index is below 50, which is within bearish territory, suggesting that bears may continue to control the market in the near term.
Key resistance for GBP/USD lies in the 1.2500-1.2505 area, where the upper Bollinger Bands, psychological round numbers and the 100 hourly exponential moving average converge. Further upside resistance lies at 1.2530 (September 12 high). On the further upside, 1.2548 will serve as resistance for GBP/USD, followed by the psychological 1.2600 level.
On the downside, as long as GBP/USD breaks below the lower Bollinger Band and there is follow-up selling after the September 12 low of 1.2460, GBP/USD will challenge the next key level of 1.2440 (May 12 low), and then 1.2390 (June 6 low), then 1.2350 (May 31 low).
