GBP/USD needs to break 1.3045 to unleash the upside on Brexit decision day — Confluence Detector
GBP/USD surged on the news of a Bexit text but retreated as it is unclear if it will muster support in the Cabinet or in Parliament. What levels should we watch?
The Technical Confluences Indicator shows that cable faces initial resistance at 1.3005 which is the convergence of the Simple Moving Average 5-15m, the Fibonacci 23.6% one-day, the previous 4h low, and the SMA 10-1h.
A more significant cap awaits at 1.3045 where we see a dense cluster including yesterday's high, the Fibonacci 38.2% one-week, the Fibonacci 61.8% one-month, and the SMA 50-one-day.
Even higher, 1.3120 is the meeting point of the Pivot Point one-month Resistance 1 and the Pivot Point one-week R1.
Looking down, some support awaits at 1.2950 which is the convergence of the Bollinger Band 4h-Middle and the BB one-day Middle.
At 1.2917 Sterling will find the support of the Fibonacci 38.2% one-month, and the SMA 200-15m.
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.
