GBP/USD faces a wall of resistance ahead of the first round of the Conservative Contest — Confluence Detector

GBP/USD has been trading just below 1.2700 as MPs from the ruling Conservative Party prepare to choose between ten contenders to lead the party and the country. Where next for the pound? The downside seems more appealing.

The Technical Confluences Indicator shows that GBP/USD faces a wall of resistance in the 1.2705-1.2711 region. The dense cluster includes the Fibonacci 23.6% one-month, the Fibonacci 38.2% one-week, the Simple Moving Average 5-1d, the SMA 100-1h, the SMA 100-15m, the SMA 200-15m, the SMA 5-1h, the Fibonacci 23.6% one-day, the SMA 5-4h, and the Bollinger Band 4h-Middle. 

If the pair manages to run higher, it will face several hurdles with 1.2797 standing out. It is the convergence of the Fibonacci 38.2% one-month, the Pivot Point one-week Resistance 1, and the PP 1d-R2. 

Looking down, some support awaits close by, at 1.2684 where the previous daily low and the SMA 10-1d converge.

Further down, weak support is at 1.2611 where last week's low and the Bollinger Band 1d-lower meet.

This is how it looks on the tool:

GBP USD technical confluence June 13 2019

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

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: traders set to position ahead of Fed

The EUR/USD pair moderated its advance on Friday, compliments to stronger-than-expected US data, finishing the week anyway with gains around 1.1070. Better-than-expected US data released Friday brought relief to USD bulls.


GBP/USD: Brexit optimism keeps bulls in the drivers’ seat

The GBP/USD pair has advanced for a second consecutive week, reaching Friday 1.2505, its highest since last July, and settling not far below this last. Fading odds for a hard-Brexit continue to underpin the Pound.


USD/JPY: further gains depending on risk-related sentiment

The USD/JPY pair settled above the 108.00 level for the first time since late July, closing substantially higher for a third consecutive week.  Demand for the safe-haven yen continued to be undermined.


The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more

Gold: Down for third straight week, on the defensive ahead of the Fed

Gold is set to end lower for the third straight week and will likely remain on the defensive in the run-up to Wednesday's Federal Open Market Committee (FOMC) meeting. A dovish surprise will likely put a strong bid under the yellow metal.

Gold News

Forex Majors