SHORT TERM: GBPUSD could rally to 1.22689 Target

The GBPUSD pair appears to have found short-term support at the 200 exponential moving average (EMA). If price can remain above this dynamic support, we could expect the pair to rally and reach my short-term target of 1.22689. However, if the price breaks below the 200 EMA, the pair could move lower to the demand zone between 1.2086 and 1.20731. In the longer term, the outlook for the GBPCAD pair will be determined by the relative strength of the British pound against the US dollar. If the pound continues to gain strength, the pair could continue to rally, while a weakening pound could push the pair lower.