GBP/USD faces wall of resistance ahead of Brits' return to pubs – Confluence Detector

Yohay Elam FXStreet

GBP/USD has been dragged lower as Brexit talks saw "ongoing divergence" and as rising US coronavirus cases boosted the US dollar. As the UK extends its reopening and pubs reopen, does cable have room to recover? Technicals suggest it may run into trouble.

The Technical Confluences Indicator is showing that GBP/USD is capped at 1.2466, which is the convergence of the Fibonacci 61.8% one-week, the Bollinger Band 15min-Lower, the Simple Moving Average 50-1h, and the SMA 200-15m.

Fiercer resistance awaits at 1.2485, which is a dense cluster of lines including the SMA 100-15m, the Pivot Point one-week, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-day, the Bollinger Band 1h-Middle, the SMA 10-4h, and several other lines.

Support is found at around 1.2402, which is the confluence of the SMA 5-one-day, the Fibonacci 38.2% one-week, and others.

Further down, GBP/USD bears may target 1.2370, where the PP one-day S3 and the Fibonacci 23.6% one-week 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.

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.