GBP/USD has a clear trading range as as the focus shifts to Parliament — Confluence Detector
GBP/USD found a new balance above 1.3100 as British lawmakers are set to vote on amendments to the Brexit deal in an unpredictable session in Parliament. Volatility is set to be high and cable has well-marked ranges.
The Technical Confluences Indicator shows that pound/dollar struggles with 1.3155 which is the convergence of the Simple Moving Average 5-1h, the Bollinger Band 15 minutes Middle, the SMA 10-1h, the SMA 5-4h, the SMA 10-15m, the SMA 50-15m, and the Fibonacci 23.6% one-day.
Looking up, significant resistance awaits at 1.3217 which is the convergence of the weekly high and the Pivot Point one-day Resistance 1.
The next hurdle is 1.3270 which is a critical juncture including the Fibonacci 161.8% one-day, the Pivot Point one-month Resistance 3, the Bollinger Band 4h-Upper, and the Pivot Point one-day Resistance 2.
On the downside, the pair has some support around 1.3093 which is minefield including the PP one-day S2, the SMA 5-1d, and the SMA 100-1h.
The most substantial support line awaits at 1.3066 where we see a dense cluster of lines: the Fibonacci 161.8% one-month, the PP one-week S3, the SMA 200-1d, and the PP one-month R2.
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.
