GBP/USD may find it hard to overcome the weekend gap — Confluence Detector

Yohay Elam FXStreet

The GBP/USD kicked off the week on the lower ground due to Barnier's comments rejecting Britain's Brexit proposal. Can it recover? It will not be easy.

The Technical Confluences Indicator shows that the pair faces robust resistance at 1.2967 which is the convergence of the Bolinger Band one-hour Middle, the Fibonacci 61.8% one-month, the Fibonacci 48.%, and the Fibonacci 23.6% one-day.

The substantial resistance line for the GBP/USD awaits at 1.3047 which is the confluence of the Bolinger Band one-day Upper, last month's high, and last week's high.

On the downside, there is immediate, yet not-that-strong support at around 1.2915 and this includes the Bolinger Band 15m-Lower, the Simple Moving Average 5-1h, the Bolinger Band 15-Middle, and the SMA 10-one-day.

A more significant cushion is only at the 1.2845 where we see the meeting point of the Pivot Point one-day Support 3, the PP one-week Support 1, the Fibonacci 38.2% one-month, and the BB one-day Middle.

All in all, a recovery will be hard to pull off.

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.

Learn more about Technical Confluence

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.

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