GBP/USD may struggle to recover 1.3200 after the recent fall — Confluence Detector
|GBP/USD gradually dropped from the highs above 1.13300 and eventually slipped below 1.3200. Can it recover? It will not be too easy.
The Technical Confluences Indicator shows that cable faces fierce resistance in the area between 1.3197 to 1.3218. The area consists of the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, the Bollinger Band 1h-Upper, the SMA 50-1h, the SMA 200-15m, and the Fibonacci 23.6% one-month.
The next cap is quite close as well: around 1.3245 we note the convergence of the SMA 5-1d, the Pivot Point one-day Resistance 1, the BB 4h-Middle, and the Fibonacci 38.2% one-week.
The good news for GBP/USD is that it also enjoys significant support. 1.3135 is the convergence of the Fibonacci 38.2% one-month and the Pivot Point one-day Support 1.
Yet if it falls further, the next cushion is only at 1.3053 where we see the confluence of the previous week's low, the PP 1m-S1, and the SMA 100-4h.
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.