The pair is now rising toward the 200-day exponential moving average (EMA), which is around 1.26. This will be the key resistance area as April and May's highs are also located here.
If bulls manage to push the cable above this zone, stop-losses of short positions will be hit, which might accelerate the rally, with the next target near 1.28.
Alternatively, if the US dollar starts strengthening again, the support is seen near 1.2290/1.23, and cable needs to remain above this level if bulls want to attack the 200 EMA anytime soon.
As we have said many times before, the Fed is outpacing other central banks in money printing, which should keep the greenback under pressure, especially if sentiment remains positive.