GBP/USD targets 1.3188 after settling on higher ground — Confluence Detector
The GBP/USD enjoyed optimism on Brexit and also US Dollar weakness following the weak US inflation report. After topping 1.3100, what's next?
The Technical Confluences Indicator shows that cable faces significant resistance at 1.3188 where we see the convergence of the Pivot Point one-month Resistance 1, the Pivot Point one-day Resistance 2, and the Simple Moving Average 100-one-day.
Further up, a noteworthy target is 1.3283 which is the Pivot Point one-week Resistance 3.
Significant support awaits at 1.3050 where we see last month's high, the Bolinger Band four-hour Middle, and the Pivot Point one-day Support 1.
The strongest line of support is only at 1.2975 which is the dense cluster of including the SMA 200-1h, the SMA 50-4h, the SMA 10-one-day, the Fibonacci 161.8% one-day, and the Fibonacci 61.8% one-month.
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.
