GBP/USD rises to challenge a massive resistance line — Confluence Detector

The Technical Confluences Indicator shows that the recent move by the  GBP/USD was not a hard one. The $1.4251 level is a cluster of the Fibo 23.6% one-week, the 15-minute low, the SMA-5 15m, and the Fibo 61.8% one-day. The line now turns into support.

A much more dense convergence of technical resistance levels awaits at $1.4280. This is the meeting point of the Bolinger Band one-day Upper (Stdv 2.2), the BB Fibo 38.2% one-day, the BB 15-m Upper, Pivot Point one-month R1, the Fibo 23.6% one-day, and the PP one-day R1.

Further above, the $1.4340 level is the 52-week high, the Pivot Point one-day R2, the PP one-week R1, and more. 

Looking down, if the pair drops below $1.4251, it faces a long list of support lines spread out along the way, with the most important congestion of cushions only at $1.4120, where the Fibo 23.6% one-month, the SMA100-4h, and the PP one-week S1 all meet.

All in all, the pair faces a big hurdle around $1.4280, the confluence of the most important levels. A decisive move higher may open the door to challenging the post-Brexit highs.

Here is how it looks:

Confluence Detector

The Confluence Detector finds interesting 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.

Learn more about Technical Confluences