GBP/USD has a clear range amid the Brexit endgame, jobs report — Confluence Detector
GBP/USD tumbled down at the wake of the new week but recovered some of its losses. It was all about Brexit that remains in the spotlight, but also about the British jobs report. What levels should we watch?
The Technical Confluences Indicator shows that cable has some support around 1.2875 which is the convergence of the Bollinger Band 15m-Middle, the Fibonacci 38.2% one-day, the previous hour's low, the Simple Moving Average 5-15m, and the SMA 10-15m.
Below, substantial support awaits at 1.2832 where we see the Fibonacci 23.6% one-month, the Bollinger Band 1h-Lower, and yesterday's low.
Looking up, GBP/USD faces a cap at 1.2911 where we see the confluence of the all-important Fibonacci 38.2% one-month, the Fibonacci 61.8% one-day, and the Bollinger Band 1h-Upper.
Should a Brexit deal be announced, the next resistance line of resistance is 1.2962 where we see a cluster including the SMA 10 one-day, the BB one-day Middle, and last week's low.
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.
