GBP/USD path of least resistance is down on busy Brexit debate day — Confluence Detector
The failure of the GBP/USD to break to higher ground opens the door to the downside on the day of the big Brexit debate in the House of Commons, the Trump-Kim Summit, the UK jobs report, and the US inflation data.
The Technical Confluences Indicator shows that the pair faces an initial hurdle around 1.3371 which is the convergence of the Simple Moving Average 5-15m, the SMA 10-1h, the Fibonacci 23.6% one-day, the Bolinger Band 15m-Upper, the SMA 50-15m, and the SMA 200-1h.
Next up, the 1.3406 is the confluence of the potent SMA 5-1d, the Fibonacci 61.8% one-day, and the Fibonacci 38.2% one-week, the SMA 50-1h, and the Bolinger Band one-hour Upper.
The most significant cap is around 1.3427 which is the meeting point of the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-week, and the Pivot Point one-day Resistance 1.
Looking down, support awaits at 1.3343 which is the convergence of the Fibonacci 23.6% one-month, the one-day High, and the Pivot Point one-day Support 1.
Lower, 1.3294 is the convergence of the Pivot Point one-day support 2 and the one-week low. Even lower, notable support is at 1.3211 is the one-month low and the Pivot Point one-week Support 2.
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.
