GBP/USD should not lose this support line— Confluence Detector
GBP/USD is trading steadily in a relatively narrow range, looking for a new direction as all eyes are on the vote in Parliament. Where next?
The Technical Confluences Indicator shows that cable enjoys significant support at 1.2730 which is the convergence of last week's low, the Fibonacci 23.6% one-day, the Simple Moving Average 5-4h, the Bollinger Band 15m-Lower, the SMA 50-15m, the SMA 10-1h, and others.
However, if GBP/USD slips below this line, the next cushions are much weaker. Substantial support is found only around 1.2630 where we see the Pivot Point one-day Support 2 and the Bollinger Band one-day Lower.
Looking up, the pair faces a resistance area around 1.2755 where we list the Bollinger Band 15m-Upper, the BB 1h-Upper, the SMA 200-15m, the SMA 50-1h, the SMA 10-15m, the Fibonacci 38.2% one-day, the SMA 4h, and more.
Looking up, the target is 1.2835 where we see yesterday's high, the SMA 100-4h, the Fibonacci 23.6% one-month, the Bollinger Band 4h-Upper, and others.
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.
