GBP/USD - GBPUSD review for the week ahead - 05/23/2024 (GMT)

Cable pair is experiencing a rather aggressive bullish rally since early May but starts showing some signs of slowing down at least from the technical perspective. Yesterday’s intraday resistance at the major technical resistance area which combined the 78.6% of the weekly Fibonacci retracement level and the upper band of the Bollinger bands proved to be strong in slowing down the rally. The 20-day moving average (red line) crossed above the 50-day moving average(green line) showing that the short term momentum might be bullish while both of these moving averages are still trading below the slower 100-day moving average( white line) indicating that the overall bearish momentum has yet to be broken at least for now. On the other hand the Stochastic oscillator is in the extreme overbought levels (over 90) hinting that there might be a correction to the downside in the coming sessions. The Bollinger bands are quite expanded showing that volatility in the market is fueled-up and therefore the price has the dynamic to move to either direction aggressively. 
The area of $1.265 might be the first major support level which consists of the 61.8% of the weeky FIbonacci retracement level as well as an area of previous price reaction in early April. On the contrary if the price continues its bullish trajectory then the first area of possible resistance might be seen around $1.28 which is the psychological resistance of the round number and is also just above the 78.6% of the weekly Fibonacci retracement level.