GBP/USD battle lines are drawn in parliament and on the charts — Confluence Detector
GBP/USD has surged as the EU and the UK reached a deal and now the action moves to parliament, where Prime Minister Boris Johnson will try to muster support and it will likely be close. How is cable positioned? Support and resistance lines are clear to see.
The Technical Confluences Indicator is showing that GBP/USD enjoys support at 1.2842, which is the convergence of the Simple Moving Average 10-4h, the Bollinger Band 15min-Lower, the Fibonacci 61.8% one-day, the previous 4h-low, the BB one-day Upper, the SMA 100-15m, and more.
Robust resistance awaits at 1.2903, which is the convergence of the Fibonacci 38.2% one-day, and the PP one-month Resistance 2.
The upside target is 1.3009, which is where the Pivot Point one-day Resistance 1 meets the chart.
Looking down, the downside target is 1.2755, which is the confluence of the previous daily low and the SMA 5-one-day.
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.
