GBP/USD path of least resistance remains down, 1.2777 eyed — Confluence Detector
The GBP/USD extended its falls and collapsed below 1.2900 as a no-deal Brexit looks more real.
The Technical Confluences Indicator shows that the GBP/USD has lots of resistance lines on the way up. The initial hurdle awaits at around 1.2900 which is the convergence of the Bolinger Band one-day Lower, the BB 1h-Upper, the 4h high, and the Fibonacci 38.2% one-day.
The next cap is at 1.2937 which is the confluence of the Pivot Point one-month Support 1, the BB 4h-Middle. And this is not the end of the battle towards 1.3000 as we see a dense cluster of lines at 1.2964 which is last month's low, the one-day high, the Simple Moving Average 100-1h, and the SMA 5-one-day.
On the downside, we find 1.2857 as the Pivot Point one-week Support 2, the one-day low, the Bolinger Band 1h-Lower, the BB 4h-Lower, and the BB 15m-Lower.
The next substantial support line is only at 1.2777 which is the 52-week low among other minor levels. Further down, 1.2737 is the Pivot Point one-day Support 3 and the PP one-week S3.
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.
