GBP/USD eyes 1.1992 after falling toward 1.2100 — Confluence Detector
GBP/USD has suffered a massive sell-off as prospects of a hard Brexit seem "very real" according to Michael Gove, a senior minister in Boris Johnson's government. What are the next targets?
The Technical Confluences Indicator shows that GBP/USD has some support at 1.2100 where the Pivot Point one-day Support 2 awaits cable.
The next noteworthy cushion is already below 1.2000. At 1.1992 we find another Pivot Point – the one-day Support 3.
Looking up, some resistance awaits at 1.2157 which is the meeting point of the Simple Moving Average 10-15m and the previous 4h-low.
Further up, a more significant cap is 1.2182 which is the convergence of the Bollinger Band 4h-Lower and the Pivot Point one-week Support 3.
Fierce resistance awaits at 1.2264 which features the SMA 100-15m, the Fibonacci 23.6% one-day, the Pivot Point one-month S3, and more.
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.
