GBP/USD has a 210-pip range as the Brexit buzz continues — Confluence Detector
GBP/USD collapsed on the resignation of Dominic Raab but managed to stage a recovery of sorts. As the political circus continues in London, what levels should we watch? The range is quite clear: 1.2700 to 1.2910.
The Technical Confluences Indicator shows that immediate resistance awaits at 1.2820 which is the convergence of the Pivot Point one-week Support 2, the Bollinger Band 1h-Upper, and the Fibonacci 23.6% one-month.
The next cluster of resistance is around 1.2910. The area consists of the all-important Fibonacci 38.2% one-month, the Fibonacci 61.8% one-day, the Simple Moving Average 100-1h, the SMA 50-1h, the SMA 10-4h, and the SMA 200-15m.
The pair is struggling around 1.2795 where we see the Bollinger Band 15m-Middle, the SMA 5-1h, the Fibonacci 23.6% one-day, and the SMA 10-15m.
Significant support is only at 1.2700 where we see last month's low, the Bollinger Band one-day Lower, and the Pivot Point one-month Support 3.
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.
