GBP/USD pulled off a mighty recovery, resistance at $1.3620 — Confluence Detector
The Technical Confluences Indicator shows that the GBP/USD has overcome potent and dense cluster of resistance and the momentum can carry it to higher ground. The $1.3565 level is the convergence of the Bolinger Band 1h-Middle (Stdv. 2.2), the Bolinger Band 15-Middle, the Fibonacci 23.6% one-week, the SMA50-15m, and the Bolinger Band 1h-Middle.
The next level of resistance is at $1.3620 which is the congestion of the Bolinger Band 1h-Upper, the Simple Moving Average 5 one-day, and the all-important Fibonacci 38.2% one-week.
Even higher, cable may face a confluence of technical barriers at $1.3680, which is the meeting point of the Fibonacci 61.8% one-week, the Pivot Point one-day Resistance 3, the SMA200-1h, and the SMA 50-4h.
Should the pair slip back down, a mighty cushion awaits at $1.3525 which is where the Pivot Point one-month Support 1, the Fibonacci 38.2% one-day, the Bolinger Band one-hour Lower, and the Fibo 23.6% one-day converge.
Here 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.
