GBP/USD is at the crossroads ahead of a busy day — Confluence Detector
|GBP/USD is trading just above 1.3000, looking for a new direction. A mix of UK GDP, US inflation, and the new American tariffs on China are all in the mix. What do the technical levels show?
The Technical Confluences Indicator indicates that GBP/USD is holding just above 1.3010 which is a dense cluster including the Simple Moving Average 100-one-day, the Bollinger Band 15min-Lower, the Fibonacci 61.8% one-week, the Fibonacci 61.8% one-day, the SMA 5-1h, the SMA 10-1h, the BB 1d-Middle, the SMA 10-15m, the SMA 5-15m, the SMA 200-15m, and more.
If the currency pair falls off that dense region, it has several support lines on the way down, but a considerable cushion awaits only at 1.2870 which is the convergence of last month's low and the Pivot Point one-month S1.
Immediate resistance awaits at 1.3037 which is the confluence of the BB 1h-Upper and the previous daily high.
A more substantial cap awaits at 1.3071 which is the meeting point of two Fibonacci lines: the 38.2% one-week and the 61.8% one-month.
This is how it looks on the tool:
Confluence Detector
The Confluence Detector finds exciting 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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