GBP/USD entrenched in a clear range ahead of the UK budget — Confluence Detector
The GBP/USD is consolidating the losses from the US Dollar storm last week. A new week begins with the UK budget standing out. The pair is trading in clear trading ranges.
The Technical Confluences Indicator shows that the GBP-USD faces resistance around 1.2855, which is the convergence of the Fibonacci 23.6% one'week, the Bollinger Band one-hour Upper, and the Pivot Point one-day Resistance 1.
The bottom end of the range is 1.2821 where we see the confluence of the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, the SMA 100-15m, the Bollinger Band 1h-Middle, and the Fibonacci 23.6% one-day.
Looking beyond this narrow range, substantial resistance awaits at 1.2900 where the Fibonacci 38.2% one-week coincides with the SMA 100-1h and the SMA 5-one day.
Lower support awaits at 1.2780 which is the previous day's low and the Pivot Point one-month Support 1.
The path of least resistance is to the downside.
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.
