GBP/USD looks set for more falls — Confluence Detector
|GBP/USD is trading around 1.2900 after surrendering to the dollar and as cross-party Brexit talks are not going anywhere fast. The technical levels look bearish.
The Technical Confluences Indicator shows that cable faces resistance at 1.2923 which is the convergence of the Fibonacci 38.2% one-day, the Bollinger Band 1h-Middle, and the BB 1d-Lower.
Further above, fierce resistance awaits at 1.2963 which is a dense cluster including the Simple Moving Average 5-1d, the BB 4h-Middle, the BB 1h-Upper, the SMA 100-1d, the SMA 200-1d, the previous daily high, and the SMA 100-1h.
The door to the downside is more open. Some support is at 1.2890 which is the confluence of the BB 4h-Lower, the previous 4h-low, the BB 1h-Lower, the Pivot Point one-week S2, and the previous daily low.
If GBP/USD loses this line, the downside target is 1.2802 where the PP 1d-S3 meets the PP 1w--S3.
All in all, the path of least resistance is to the downside.
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.
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.