GBP/USD enjoys two significant support lines and eyes higher levels — Confluence Detector

Yohay Elam FXStreet

GBP/USD has been gradually recovering from the downfall it suffered after the televised debate between the leaders of Britain's largest parties. How is cable positioned on the charts?

The Technical Confluences Indicator is showing that pound/dollar enjoys significant support at 1.2919, which is the convergence of the Fibonacci 61.8% one-day, the Simple Moving Average 100-15m, the SMA 5-4h, the SMA 5-4h, the SMA 10-4h, and the Bollinger Band 1h-Middle.

Further down, another considerable cushion awaits at 1.2871, which is the meeting point of the Fibonacci 38.2% one-week and the Pivot Point one-day Support 2.

Looking up, some resistance awaits at 1.2960, which is the confluence of the Fibonacci 161.8% one-day, the Bollinger Band one-day Upper, the PP one-week R1 and the PP 1d-R2.

Further above, sterling may target 1.3013, which is where the six-month high and the PP 1w-R2 meet the price.

All in all, the path of least resistance is to the upside.

This is how it looks on the tool:

GBP USD confluence analysis November 21 2019

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.

Learn more about Technical Confluence

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.

GBP/USD weakens to two-week lows near 1.3520

GBP/USD trades on the back foot, returning to the low 1.3500s, or two-week troughs, on Tuesday. Cable’s bearish price action follows decent gains in the Greenback at the time when investors assess latest US data releases and the persistent uncertainty in the US-Iran crisis.

EUR/USD remains offered; breaks below 1.1600

EUR/USD now accelerates its daily correction, breaching below the key 1.1600 support level on Tuesday. The pair’s daily correction comes on the back of a decent bounce in the US Dollar despite disappointing US data releases and amid persistent geopolitical concerns.

Gold flirts with multi-week lows near $4,300

Gold accelerates its correction and recedes toward the key $4,300 mark per troy ounce on Tuesday. The yellow metal’s persistent decline comes in response to the solid performance of the US Dollar and a sharp move higher in US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP struggle to extend gains despite ETF inflows

Bitcoin stalls while holding above $78,000 support as ETF inflows return. Ethereum takes a breather around $2,450 amid sustained institutional support. XRP remains pressured as the 200-day EMA provides immediate support.

Global bond market sell off haunts markets

Global sovereign bonds are selling off as we start a new month. The UK is, unsurprisingly, taking the biggest hit. Two and 10-year yields rose by 10 basis points at one point on Tuesday, and are currently higher by 7 and 8bps respectively.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.