GBP/USD faces little technical resistance on the way up — Confluence Detector
|The Technical Confluences Indicator shows that the GBP/USD has plenty of support to the downside and few resistance lines on the way up. Looking down, the $1.4124 area features the SMA10-15m, the SMA10-4h, Bolinger Bands 1h-Upper Stdv 2.2 and the Fibo 38.2% 1d.
An even stronger cluster of support lines awaits around $1.4080: the 1d high, the BB 15m Lower Stdv, the Fibo 61.8% 1M, the SMA100-1h, Bolinger Bands 1h-Middle Stdv and the 4h high.
Looking up, there are very few levels. The only noteworthy area is the Fibo 61.8% 1d and the Pivot Point 1w Resistance 3 around $1.4170.
All in all, cable will find support at two very dense areas in the immediate vicinty while on the upside it has little resistance. A move above $1.4170 can result in a significant upswing.
Here is how it looks:
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.