GBP/USD looks vulnerable on BOE day — Confluence Detector
The GBP/USD lost some ground on US Dollar strength and recapturing these higher levels may be hard on the day the Bank of England makes its decision.
The Technical Confluences Indicator shows that many resistance lines are lined up above 1.3100 with a dense cluster around 1.3120 which is the congestion of the Simple Moving Average 50-15m, the SMA 100-15m, the SMA 100-1h, the SMA 5-4h, the Bolinger Band 1h-Middle, and several other SMA's.
Should the GBP/USD break higher, another significant hurdle is close by, at 1.3156, which is the convergence of the Pivot Point one-day Resistance 1, the Bolinger Band 4h-Upper, the one-day high and the SMA 100-4h.
Looking down, support lines are weaker. One notable confluence is at 1.3053 which is the confluence of the Fibonacci 23.6% one-month, the Pivot Point one-day Support 3, and the PP one-week Support 1.
Lower, 1.3024 is the Bolinger Band one-day Lower, a weak defense of the round 1.3000 level.
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.
