GBP/USD recovery attempt faces significant resistance — Confluence Detector
|GBP/USD has been moving marginally higher as Prime Minister Boris Johnson's Conservative Party has gained ground in the polls. Can cable extend its gains? It may struggle.
The Technical Confluences Indicator is showing that fierce resistance is waiting at 1.2887, which is the convergence of the Simple Moving Average 100-4h, the Fibonacci 38.2% one-week, the Fibonacci 61.8% one-day, the Bollinger Band 1h-Upper, and the BB one-day Middle.
If pound/dollar succeeds in breaking higher, the target is 1.3013, which is the meeting point of the Pivot Point one-day Resistance 3 and the previous monthly high.
Support awaits at 1.2821, which is the confluence of the BB 1h-Lower, the Fibonacci 23.6% one-month, and the previous daily low.
If it loses that cushion, the next target is 1.2721, where the PP one-week S2 and the 200-day SMA hits the price.
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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