GBP/USD capped by fierce resistance ahead of the Fed and "jingle polls" — Confluence Detector
GBP/USD has been trading choppily after the House of Commons approved elections on December 12, dubbed "jingle polls." Traders have no time to rest as the US Federal Reserve is awaited. How is cable positioned?
The Technical Confluences Indicator is showing that GBP/USD faces fierce resistance at 1.2876, which is the convergence of the previous 4h-high, the Fibonacci 38.2% one-week, the Bollinger Band 15 minutes Middle, the BB 1h-Middle, the Fibonacci 38.2% one-day, the Simple Moving Average 5-4h, and more.
Further above, the next target is 1.2963, which is the meeting point of the PP one-day R2 and the PP one-week R1.
Some support awaits at 1.2843, which is the confluence of the Fibonacci 23.6% one-week and the BB 1h-Lower.
The downside target is 1.2742, which is where the PP one-week Support 1 and the Fibonacci 161.8% one-day converge.
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.
