GBP/USD looks set for a smooth ride towards 1.4140 – Confluence Detector
|GBP/USD is jumping above 1.4050, as the pound cheers the UK local election outcome, as the UK PM Boris Johnson emerged stronger while Scotland’s SNP fell one seat short of an outright majority. Although the chances of a Scottish second independence referendum still remain in place, the GBP pays a little heed. Meanwhile, the US dollar remains on the back foot after the NFP blow.
Let’s see how GBP/USD is positioned technically, with the focus now on UK GDP and BOE Governor Bailey’s speech.
GBP/USD Price Chart: Key resistance and support levels
The Technical Confluences Detector shows that GBP/USD’s path of least resistance appears to the upside amid a lack of healthy resistance levels.
At the press time, the cable is flirting with 1.4060, which is the pivot point one-week R1.
The next stop for the bulls is aligned at 1.4080, where the pivot point one-day R2 converges with the Bollinger Band one-hour Upper.
A sustained break above the latter could expose the 1.4100 round number.
Further up, strong resistance awaits around 1.4140, which is the intersection of the pivot point one-week R2 and pivot point one-day R3.
Alternatively, fierce support is placed around 1.4010, the confluence of the previous day high and pivot point one-month R1.
The Fibonacci 23.6% at 1.3981 could come to the rescue of the bulls, below which the Fibonacci 38.2% one-day near 1.3965 could be tested.
Here is how it looks on the tool
About Technical Confluences Detector
The TCD (Technical Confluences Detector) 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.
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.