GBP/USD faces a wall of resistance at 1.2707 — Confluence Detector
GBP/USD has been dropping after Boris Johnson committed to leaving the EU by October 31st, "do or die." What do the charts say about the next moves?
The Technical Confluences Indicator shows that cable enjoys support at 1.2667 where we see the convergence of the previous hourly low, the Bollinger Band 15min-Lower, and the BB 1d-Middle.
Further support awaits at 1.2602 where we note the confluence of the Pivot Point one-day Support 2 and the Fibonacci 61.8% one-week.
The next cushion is at 1.2564 where the previous monthly low meets the BB 1d-Lower.
Resistance awaits at 1.2707 where we see a dense cluster of lines including the SMA 5-4h, the SMA 200-4h, the SMA 5-1d, and the Fibonacci 23.6% one-month.
The next cap is 1.2800 which is where the Fibonacci 38.2% one-month, the BB 1d-Upper and the previous daily high.
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.
