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.

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