GBP/USD volatility is high. Cable shot up to nearly 1.34 as Parliament rejected a no-deal Brexit but then cooled down all the way to 1.3250. What's next? Here are five levels to watch, starting from three support lines and moving to two resistance lines.
The Technical Confluences Indicator shows that immediate support awaits at 1.3218 which is the convergence of the Fibonacci 23.6% one-month and the Simple Moving Average 100-15m.
The second support zone is at 1.3163 which is the confluence of the Fibonacci 61.8% one-week, the SMA 10-4h, the SMA 10-1d, the SMA 200-15m, and the SMA 50-1h.
The third and most substantial support line is at 1.3129 which is a cluster consisting of the Fibonacci 38.2% one-month, the SMA 5-1d, the Pivot Point one-day Support 1, the SMA 100-4h, and the Bollinger Band 1h-Lower.
Looking up, initial resistance awaits at 1.3267 which is the meeting point of the SMA 5-1h, the Fibonacci 38.2% one-day, last week's high, and the SMA 50-15m.
The second cap is at 1.3355 where the previous month's high meets the Bollinger Band 1h-Upper.
This is how it looks on the tool:
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.