GBP/USD is trading around 1.30 as tension mounts towards the highly uncertain decision by the Bank of England. How is cable positioned?
The Technical Confluences Indicator is showing that pound/dollar is hovering below 1.3019, which is the convergence of several lines including the Bollinger Band one-hour Middle, the Simple Moving Average 10-15m, the SMA 200-15m, the Fibonacci 61.8% one-day, and the SMA 10-1h.
Further above, significant resistance awaits at 1.3059, where a dense cluster of SMAs awaits GBP/USD. These includes the 200-1h, the 50-4h, the 10-one-day, the 5-one-day, and also the Fibonacci 161.8% one-day.
Support awaits at 1.2972, which is a confluence of the Pivot Point one-week Support 1, the PP one-day S2, and the BB one-day Lower.
Further down, the most significant cushion is at 1.2863, where the PP one-week S2 and the 100-day SMA meet.
This is how it looks on the tool:
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.
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