GBP/USD battle lines set out ahead of PMIs, US jobless claims — Confluence Detector
GBP/USD has been moving higher as the market mood improved and oil prices stabilized. Pound/dollar faces UK Purchasing Managers' Indexes and US jobless claims. How it is positioned?
The Technical Confluences Indicator is showing that cable is capped by strong resistance 1.2344, which is the convergence of the previous 4h-high, the Fibonacci 38.2% one-day, the Simple Moving Average 5-4h, and the Bollinger Band 1h-Middle.
Further up, the next cap is 1.2389, which is the meeting point of two Pivot Points, the one-week Support 1 and the one-day R1.
Support awaits at 1.2319, which is the confluence of the SMA 10-4h, the Fibonacci 61.8% one-day, and the BB 15min-Lower.
Stronger support is at 1.2280, which is where the previous daily low, the PP one-day Support 1, and the PP one-week 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.
