GBP/USD enjoys two significant support lines and eyes higher levels — Confluence Detector
|GBP/USD has been gradually recovering from the downfall it suffered after the televised debate between the leaders of Britain's largest parties. How is cable positioned on the charts?
The Technical Confluences Indicator is showing that pound/dollar enjoys significant support at 1.2919, which is the convergence of the Fibonacci 61.8% one-day, the Simple Moving Average 100-15m, the SMA 5-4h, the SMA 5-4h, the SMA 10-4h, and the Bollinger Band 1h-Middle.
Further down, another considerable cushion awaits at 1.2871, which is the meeting point of the Fibonacci 38.2% one-week and the Pivot Point one-day Support 2.
Looking up, some resistance awaits at 1.2960, which is the confluence of the Fibonacci 161.8% one-day, the Bollinger Band one-day Upper, the PP one-week R1 and the PP 1d-R2.
Further above, sterling may target 1.3013, which is where the six-month high and the PP 1w-R2 meet the price.
All in all, the path of least resistance is to the upside.
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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