GBP/USD path of least resistance still down afer the fall — Confluence Detector
The GBP/USD tumbled down on concerns of a no-deal Brexit and it may find it hard to claw its way back above 1.3000.
The Technical Confluences Indicator shows that a dense congestion of resistance lines awaits at 1.2958. This includes the all-important Fibonacci 38.2% one-day, the Bolinger Band 1h-Upper, the one-day Lower, last month's low, and the Simple Moving Average 100-15m.
The next hurdle is close by, at 1.2979 which is the confluence of the SMA 200-15m, the SMA 50-1h, last week's low, and the Fibonacci 61.8% one-day.
Should it recover above these two levels, it may run up to 1.3050 which is the convergence of the Pivot Point on one-day Resistance 2, the Fibonacci 23.6% one-month, the SMA 5-one-day, and the Fibonacci 38.2% one-week.
The GBP/USD has some immediate downside support around the 1.2938 area which is the confluence of the PP one-month Support 1, the BB 15m Lower, the one-hour Low, the SMA 5-4h, the Fibonacci 23.6% one-day, the BB 15m-Middle, the SMA 5-15m, the PP one-week Support 1, and the BB 1h-Lower.
However, support is far weaker than resistance. Below the area mentioned earlier, support is even weaker. Only 1.2858 is notable for the confluence of the PP one-week Support 2, and the PP one-day 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.
