Ella 
The GBP/USD currency pair remained on the defensive below the 1.2400 mark during early Asian trading on Monday. The pair is currently trading around 1.2390, up 0.06% on the day. Market participants tend to wait and see ahead of this week’s key events. The Federal Reserve (Fed) interest rate decision and the British consumer price index for August will be announced on Wednesday. These events can trigger volatility in currency pairs.
From a technical perspective, GBP/USD is holding below the 50 and 100 hour exponential moving averages (EMA), with the slope on the one-hour chart pointing downwards, meaning further downside looks favorable. Meanwhile, the Relative Strength Index (RSI) is below 50, within bearish territory, indicating that sellers may continue to control the market in the near term.
Key resistance for GBP/USD is near the confluence of the upper Bollinger Bands and the 50 hour moving average, or the 1.2420-1.2430 area. Additional upside resistance lies at 1.2445 (100 hourly EMA). Further north, the psychological round figure of 1.2500 will be the pair’s next hurdle, followed by 1.2530 (September 12 high).
On the downside, any subsequent selling below the lower Bollinger Band level of 1.2367 will see the pair drop to 1.2350 (May 31 low). The next level of contention for the pair appears around round-number levels and the May 25 low of 1.2300.
