GBP/USD shrugs off bad news and has room to rise — Confluence Detector

Yohay Elam FXStreet

GBP/USD trades steadily at the 1.2700 handle, shrugging off the government's defeat in Parliament. Cable's strength is also evident in the charts.

The Technical Confluences Indicator shows that GBP/USD has significant support in the 1.2689-1.2702 range. The dense cluster of technical lines includes the Simple Moving Average 50-4h, the Bollinger Band 1h-Lower, yesterday's low, the SMA 100-1h, the SMA 10-1d, the Fibonacci 61.8% one-month, the SMA 200-4h, the SMA 200-1h, the SMA 5-1d, and the Pivot Point one-day Support 1.

Close by, further support awaits at 1.2675 where we see the meeting point of the Fibonacci 38.2% one-week and the BB 1d-Middle.

Looking up, cable faces immediate resistance at 1.2742 where we see the convergence of the BB 4h-Middle, the SMA 10-15m, the BB 15m-Middle, the SMA 5-15m, the SMA 100-15m, the SMA 5-4h, and the Fibonacci 38.2% one-day.

Further resistance awaits at 1.2781 which is the confluence of the Pivot Point one-day Resistance 1 and the Bollinger Band one-day Upper.

All in all, support is far more significant than resistance.

This is how it looks on the tool:

GBP USD technical confluence January 9 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.

Learn more about Technical Confluence

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.

GBP/USD bounces off lows, back above 1.3200

After bottoming out near 1.3160, GBP/USD manages to regain a bit of shine and reclaim the 1.3200 mark and beyond at the end of the week. Stronger-than-expected UK Retail Sales data seem to be helping the British Pound limit its losses, while the chaotic UK political environment keeps the bulls at bay for now.

EUR/USD looks consolidative around 1.1460

EUR/USD stages a modest rebound after slipping to a three-month low below 1.1420 at the end of the week. That said, the pair now looks to consolidate humble gains just above 1.1460 despite growing uncertainty surrounding the next round of US-Iran negotiations, which keeps the US Dollar’s downside contained.

Gold slips back to six-day lows, targets $4,100

Gold retreats for the third consecutive day on Friday, eroding gains seen in the first half of the week and approaching the key $4,100 mark per troy ounce. Indeed, the precious metal continues to face headwinds from the Fed's hawkish stance and renewed uncertainty surrounding the next round of US-Iran negotiations.

Breaking: Iran closes the Strait of Hormuz amid ceasefire deal violation

Iran says it is closing the Strait of Hormuz after accusing the United States (US) and Israel of violating the ceasefire. According to Iran, the decision came over the continued Israeli strikes in Lebanon. The Iranian Revolutionary Guard Corps Navy issued a warning to all vessels: "Do not approach the Strait of Hormuz; otherwise, your security will be jeopardized."

The Iran war didn't break the US economy, but what happens next?

Nearly four months after the start of the Iran war, the US economy remains remarkably resilient. While the conflict initially triggered a severe disruption to global energy markets and a sharp rise in Oil prices, recent diplomatic progress between Washington and Tehran has eased concerns about a prolonged supply shock.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.