GBP/USD Holds Below 1.2200 Ahead of Key US Economic Releases

GBP/USD remains subdued at 1.2180, down 0.2% following yesterday's stronger-than-expected US CPI data that reinforced dollar strength. The pair faces immediate resistance at 1.2220, with support established at 1.2150. Market participants await today's US Producer Price Index and retail sales figures, expected at 0.3% m/m and 0.5% m/m respectively, which could further influence Fed rate expectations. The pound's resilience is partially supported by Bank of England officials maintaining a hawkish stance on inflation control, though sterling struggles to gain meaningful traction against the resurgent dollar. Technical momentum indicators suggest continued consolidation, with the RSI hovering near 45. A break below 1.2150 support could accelerate losses toward 1.2100, while stronger-than-expected US data would likely maintain downward pressure on the pair.