GBP/USD sits on critical support on Super Thursday — Confluence Detector

Yohay Elam FXStreet

GBP/USD is looking for a new direction at the 1.2900 handle ahead of the all-important Bank of England's "Super Thursday" releases and the meeting between UK PM Theresa May and European Commission President Jean-Claude Juncker. Where will the pound go to? Cable enjoys a significant cushion below. Will it rise? or break lower?

The Technical Confluences Indicator shows that pound/dollar has significant support around 1.2926 where we see the convergence of the previous day's low, the Pivot Point one-day Support 1, and the Fibonacci 38.2% one-month, all are potent lines.

Some resistance is at 1.2945, which is the confluence of the Simple Moving Average 5-4h, the Bollinger Band 1h-Middle, and the Fibonacci 38.2% one-day.

More significant resistance is at 1.3027 which is a juncture of lines including the SMA 100-4h, the PP one-day R3, the SMA 5-1d, and the Fibonacci 23.6% one-month.

Looking down, there is some support at 1.2892 where we see the Pivot Point one-day S2 and the SMA 100-one-day converge.

This is how it looks on the tool:

GBP USD technical confluence February 7 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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