We report a numerical study on Aharonov-Bohm (AB) effect and giant magnetoresistance in rectangular rings made of graphene nanoribbons (GNRs). We show that in low energy regime where only the first subband of contact GNRs contributes to the transport, the transmission probability can be strongly modulated, i.e., almost fully suppressed, when tuning a perpendicular magnetic field. On this basis, strong AB oscillations with giant negative magnetoresistance can be achieved at room temperature. The magnetoresistance reaches thousands % in perfect GNR rings and a few hundred % with edge disordered GNRs. The design rules to observe such strong effects are also discussed. Our study hence provides guidelines for further investigations of the AB interference and to obtain high magnetoresistance in graphene devices.