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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD: Bearish outside day as Fed tempers aggressive rate cut expectations

Tuesday’s bearish outside day makes today’s close pivotal. Fed officials pushed back on aggressive rate cut calls, pushing the USD higher. An above-forecast US durable goods data could yield a bearish daily close. 

EUR/USD News

GBP/USD offers fewer moves ahead of Carney’s speech

Having reversed from the 50-day SMA, mainly because of renewed Brexit fears and sluggish data from the UK’s CB retail sales survey, the GBP/USD pair trades modestly flat near 1.2685 ahead of the London open.

GBP/USD News

USD/JPY: Bulls back in charge, re-takes 107.50

The less dovish rhetoric from a selection of Fed speakers overnight continues to aid the post-FOMC US dollar recovery, prompting the USD/JPY pair to retest the midpoint of the 107 handle despite negative Asian equities. 

USD/JPY News

Conference Board Consumer Confidence: The China syndrome

The index declined to 121.5 in June from April’s revised 131.3. A much more modest drop to 131.2 had been predicted.  “The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence,” wrote Lynn Franco.

Read more

Gold: 100-HMA triggers the U-turn towards $1421?

Gold is on a run towards near-term horizontal-resistance following its U-turn from the 100-hour moving average (HMA) ticks it up to $1407.80 ahead of the European open on Wednesday.

Gold News

Majors

Cryptocurrencies

Signatures