GBP/USD battle lines after the recent surge — Confluence Detector
GBP/USD has jumped above 1.2200 after European leaders showed flexibility regarding the controversial Irish backstop in the Brexit accord. What technical levels should we watch?
The Technical Confluences Indicator is showing that resistance awaits at 1.2261, which is the convergence of the Bollinger Band 4h-Upper and the Fibonacci 23.6% one-month.
It is followed closely by 1.2280, where we see the meeting point of the Pivot Point one-week Resistance 2 and the Simple Moving Average 200-4h.
Looking down, support awaits at 1.2178, where the confluence of the SMA 200-15m, the SMA 50-1h, and the previous weekly high awaits the currency pair.
Significant support awaits at 1.2121, which is a dense cluster of technical lines including the previous monthly low, the SMA 10-1d, the Fibonacci 38.2% one-month, the Fibonacci 38.2% one-week, and the SMA 200-1h, the SMA 50-4h, and the SMA 100-4h.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
