GBP/USD looks vulnerable after the Fed, ahead of the BOE — Confluence Detector
GBP/USD has probably ended its recovery after the Federal Reserve has dampened hopes for a long cycle of rate cuts and sent the dollar higher. GBP/USD now faces the Bank of England's decision later today. How is cable positioned?
We can see how resistance is stronger than support.
The Technical Confluences Indicator is showing that GBP/USD is currently trading between 1.217 and 1.2136 where we see several technical lines holding the currency pair stable. These include the previous daily low, the Bollinger Band 15min-Upper, the Simple Moving Average 10-15m, the Pivot Point one-day Support 1, and more.
Support awaits at 1.2066 which is the convergence of the Fibonacci 161.8% one-day, the Pivot Point one-day Support 2, and the Bollinger Band 4h-Lower.
Further down, only weak support awaits at 1.1197 where the Pivot Point one-day Support 3 meets the price.
Looking up, fierce resistance awaits at 1.2187 which is the confluence of the Pivot Point one-week Support 3, the Fibonacci 61.8% one-day, the Bollinger Band 1h-Middle, and more.
Further above, 1.2263 is a high upside target and is where the Fibonacci 23.6% one-month, the SMA 100-1h, the BB 1h-Upper, and the previous daily high.
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.
