GBP/USD eyes new highs after the big breakout — Confluence Detector
|After the GBP/USD made a big breakout to the highest levels since 2016, the Technical Confluences Indicator shows the next levels to watch. The $1.4345 level was the convergence point of the Bolinger Band 1h-Upper (Stdv. 2.2), the SMA5-15m, the 4h-high, the BB 1h,-Upper, the SMA-5 1hv, the SMA10-15m, and more lines. It was undoubtedly important and now works as support.
Looking up, the area around $14420 is the meeting point of the Pivot Point one-day R2, the PP one-week R2, and additional lines. For even stronger resistance, the $1.4530 level is the Pivot Point one-month R2.
In case cable changes direction and falls back down there are plenty of support levels to cushion any fall. The strongest area is $1.4305, where we see a congestion of the BB one-day-Upper, the Fibonacci 38.2^ one-day, the BB 1h-Lower, the Fibo 23.6% one-day, and the SMA100-15m.
Here is how it looks:
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Confluence Detector
The Confluence Detector finds interesting opportunities using Technical Confluences. The TC is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc. Knowing where these congestion points are located is very useful for the trader, and can be used as a basis for different strategies.
This tool assigns a certain amount of “weight” to each indicator, and this “weight” can influence adjacents price levels. This means that one price level without any indicator or moving average but under the influence of two “strongly weighted” levels accumulate more resistance than their neighbors. In these cases, the tool signals resistance in apparently empty areas.
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