GBP/USD will find it hard to recover, just like Theresa May — Confluence Detector
GBP/USD dropped on the growing chances that UK PM Theresa May will be forced to quit within a month and as her successor may be Boris Johnson, a staunch supporter of Brexit. What levels should we watch?
The Technical Confluences Indicator shows that GBP/USD is capped below 1.2807 which is the confluence of the Bollinger Band one-day Lower, the Fibonacci 23.6% one-day, the Simple Moving Average 5-4h, the BB 1h-Middle, among others.
Cable faces further resistance culminating at 1.2866 which is the convergence of the Pivot Point one-month Support 1, the previous daily high, the previous monthly low, and the BB 4h-Middle.
Weak support awaits at 1.2720 where the Pivot Point one-week S3 awaits the currency pair.
The last line of support is 1.2701 where the Pivot Point one-day S3 meets the PP 1m-S2.
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.
