The GBP/USD is waiting anxiously for the all-important Super Thursday decision by the Bank of England. Will they send Sterling higher or lower?
The Technical Confluences Indicator shows that dense clusters of support and resistance await the pair. On the topside, $1.3681 is the convergence of the Fibonacci 161.8% one-day, the Fibonacci 61.8% one-week and the Simple Moving Average 10 one day, all potent levels.
On the downside, the $1.3490 level is the confluence of the Pivot Point one-day Support 1, the one-month low, the and the one-week low, also three very substantial levels.
And there are good reasons why the pair is clinging to the $1.3550 region. There is a congestion of many lines there: the SMA 5-1d, the SMA50-15m, the SMA100-15m, the SMA10-1h, the Bolinger Band 15m-Lower, the Fibonacci 23.6% one-week, the Bolinger Band one-hour-Middle, the SMA100 one hour, and the Simple Moving Average10-4h.
If Sterling shines, high resistance is at $1.3720 where the Pivot Point one-week awaits. If the Pound plummets, low support is at $1.3420.
Here 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.
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