GBP/USD eyeing 1.3030, then 1.3118 as the next upside targets— Confluence Detector
GBP/USD has topped 1.30 for the first time since October as the elections get closer and also as the dollar has been on the back foot. What are the next levels to watch?
The Technical Confluences Indicator is showing that cable is struggling around the 1.2983 to 1.2997 area, which is a cluster of lines including the Bollinger Band one-day Upper, the Fibonacci 23.6% one-day, the Simple Moving Average 5-15 minutes, the SMA 5-4h, the Fibonacci 38.2% one-day, and the Pivot Point one-week Resistance 1.
If sterling emerges from this zone, 1.3030 is the first upside target. This is a convergence of the Pivot Point one-month Resistance 1 and the PP one-week R2.
Further up, 1.3118 is the confluence of the Fibonacci 161.8% one-month, the PP one-month R2, and the PP one-week R3.
Looking down, considerable support awaits in the area between 1.2889 to 1.2909. It includes, among others, the Fibonacci 61.8% one-month, the Fibonacci 38.2% one-week, the SMA 200-1h, the SMA 50-4h, the SMA 100-4h, the BB one-day Middle, the PP one-day Support 2, and the SMA 200-4h.
Further down, the next target is 1.2862, which is where the PP one-day-S3 and the PP one-week S1 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.
