GBP/USD can jump to 1.3163 if it overcomes the current consolidation — Confluence Detector

Yohay Elam FXStreet

The GBP/USD jumped to higher ground after Barnier said that reaching a Brexit agreement is realistic within six to eight weeks. Can it continue to higher ground?

The Technical Confluences Indicator shows that the pair is currently mired in a dense area of technical levels. The 1.3035-1.3048 area is the congestion of last week's high, the Simple Moving Average 50-15m, the SMA 10-one-hour, the Bolinger Band 15m-Middle, the Pivot Point one-week Resistance 1, the BB 4h-Upper, the SMA 10-15m, the SMA 5-15m, the 4h-high, the BB 15m-Upper, and last month's high.

Overcoming this zone opens the door to surging all the way to 1.3163 which is the meeting point of the Pivot Point one-day Resistance 2 and the PP one-week Resistance 2.

Significant support is at 1.2995 which is the confluence of the Fibonacci 38.2% one-day and the Simple Moving Average 100-15m.

There are quite a few additional levels of support to the downside with the most substantial point at 1.2940 which is the convergence of the SMA 100-one-hour, the Fibonacci 38.2% one-week, and the SMA 10-one-day.

This is how it looks on the tool:

GBP USD confluence levels September 11 2018

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.

Learn more about Technical Confluence

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.

EUR/USD stays defensive below 1.1600 as USD rebounds

EUR/USD trades marginally lower below 1.1600 in the European session on Friday. The pair edges down as the US Dollar rebounds slightly after Thursday’s massive profit-taking pullback. Looming US-Iran uncertainty revives the haven demand for the Greenback, while the Euro takes a breather after the hawkish ECB hike-led rally.

GBP/USD holds steady above 1.3400 ahead of US sentiment data

GBP/USD recovers losses and trades modestly flat above 1.3400 in the European trading hours on Friday. The UK Gross Domestic Product (GDP) declined by 0.1% in April, limiting the pair's upside amid renewed US Dollar weakness. The focus now remains on the US Michigan Consumer Sentiment data.

Gold flatlines above $4,200; bearish bias intact amid US-Iran risks

,Gold recovers modest intraday losses, and turns flat during the first half of the European session, though it remains below the daily peak. Despite uncertainty over the US-Iran peace deal, a steadier mood fails to help the US Dollar in preserving its gains. This is seen as a key factor offering some support to the commodity.

Pi Network: Bulls attempt comeback as bearish strength fades

Pi Network (PI) is trading at around $0.120 after a modest recovery the previous day. Despite this recent rebound, traders should be cautious as a scheduled unlock of 14.8 million PI tokens on Friday could limit the token's recovery potential by increasing market supply. Meanwhile, the technical outlook is showing early signs of fading bearish momentum, suggesting a short-term bounce.

Week ahead – Central bank barrage ahead: Fed, BoJ, RBA, SNB and BoE in focus

The US dollar outperformed most of its major counterparts this week, with investors remaining convinced that the Fed may need to press the rate hike button before the end of this year. Fed hike bets were significantly bolstered after the US jobs report for May came in much stronger than expected, with nonfarm payrolls rising to 172k and confounding expectations of a much more modest 85k gain.

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.