GBP/USD is eyeing 1.3242 as the next upside target — Confluence Detector
|GBP/USD has been resuming its gains at the beginning of the new trading week as opinion polls remain favorable for Prime Minister Boris Johnson.
The Technical Confluences Indicator is showing that pound/dollar is trading around 1.3145, where we see a dense cluster of levels including the Fibonacci 61.8% one-day, the Simple Moving Average 10-4h, the SMA 10-15m, the BB15min-Lower, and more.
Looking up, fierce resistance awaits sterling around 1.3242, which is the convergence of the Pivot Point one-day Resistance 3, the PP 1w-R1, and the PP 1w-R3.
Support is close, at 1.3118, which is the confluence of the PP 1m-R2, the BB 1h-Lower, the Fibonacci 23.6% one-day, the BB 4h-Middle, the Fibonacci 161.8% one-month, and the BB one-day Upper.
Further down, the next cushion is at 1.3071, where the Pivot Point one-day Support 2 and the SMA 5-one-day converge.
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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