Ella 
During the Asian session on Monday, GBP/USD encountered resistance at mid-range 1.2200 and remained on the defensive. Market participants are awaiting the release of UK second-quarter gross domestic product, as well as Friday’s closely watched U.S. core personal consumption expenditures (PCE) price index data. GBP/USD is currently trading around 1.2242, up 0.02% on the day.
Nonetheless, a hawkish stance from Fed officials boosted USD/GBP. Boston and San Francisco Fed Presidents Susan Collins and Mary Daly stressed that although inflation is cooling, further interest rate increases are still necessary. This, in turn, could act as resistance for GBP/USD.
The 4-hour chart shows that GBP/USD is meeting resistance at the 50-hour and 100-hour exponential moving averages and maintaining a downward bias, suggesting further downside is on the way. The Relative Strength Index remains below 50, within bearish territory. However, oversold conditions in GBP/USD suggest that further consolidation in GBP/USD cannot be ruled out before positioning for short-term declines in GBP/USD.
In other words, short-term resistance for GBP/USD will appear near the middle track of the Bollinger Bands at 1.2290. Further upside resistance lies at 1.2354, the 50 hour exponential moving average. The upper Bollinger Band at 1.2383 will be the next resistance, followed by 1.2432 (100 hourly exponential moving average).
On the downside, the lower Bollinger Bands at 1.2200 will be the key support level. On the downside, the next stop for GBP/USD is 1.2178 (March 28 low). If GBP/USD breaks below 1.2178 (March 28 low), the next downside stops would be 1.2128 (March 16 high) and finally 1.2100 (March 17 low).
