GBP/USD remains well-bid as a 3-month extension to Article 50 is mulled — Confluence Detector

Yohay Elam FXStreet

GBP/USD slid just a bit amid non-stop Brexit headlines. A three-month extension to Article 50 is mulled in Brussels and in London, as the clock ticks down to Brexit day, currently only 35 days away. What's next for the pound? It has more room to rise than to fall.

The Technical Confluences Indicator shows that cable is well-supported at 1.3032 where we see a cluster of technical levels including the Fibonacci 23.6% one-month, the Simple Moving Average 10-15m, the SMA 5-15m, the Bollinger Band 15-minute Middle, the SMA 5-1h, and more.

Another significant convergence area awaits the pair at the round number of 1.3000, where we also see the SMA 5-1h, the BB 1d-Middle, and the SMA 100-1h.

Resistance is close to current trading levels but looks weaker. At 1.3054 we see the confluence of the SMA 10-4h, the Fibonacci 38.2% one-day, the SMA 100-15m, the SMA 200-15m, and the BB 1h-Middle.

The next resistance cluster is close by as well: the Fibonacci 61.8% one-day awaits the pair at 1.3076.

This is how it looks on the tool:

GBP USD technical confluence February 22 2019

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.

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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.

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