GBP/USD faces little technical resistance on the way up — Confluence Detector
The Technical Confluences Indicator shows that the GBP/USD has plenty of support to the downside and few resistance lines on the way up. Looking down, the $1.4124 area features the SMA10-15m, the SMA10-4h, Bolinger Bands 1h-Upper Stdv 2.2 and the Fibo 38.2% 1d.
An even stronger cluster of support lines awaits around $1.4080: the 1d high, the BB 15m Lower Stdv, the Fibo 61.8% 1M, the SMA100-1h, Bolinger Bands 1h-Middle Stdv and the 4h high.
Looking up, there are very few levels. The only noteworthy area is the Fibo 61.8% 1d and the Pivot Point 1w Resistance 3 around $1.4170.
All in all, cable will find support at two very dense areas in the immediate vicinty while on the upside it has little resistance. A move above $1.4170 can result in a significant upswing.
Here is how it looks:
Confluence Detector
The Confluence Detector finds interesting 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.
