GBP/USD has one more resistance line before unleashing a massive rally — Confluence Detector
GBP/USD is trading in the mid 1.28s after Nigel Farage's Brexit Party boosted Prime Minister Boris Johnson's chances of winning. How high can cable climb?
The Technical Confluences Indicator is showing that GBP/USD faces resistance at 1.2880, which is the convergence of the Fibonacci 61.8% one-week, the Simple Moving Average 200-1h, the SMA 50-4h, the Bollinger Band 4h-Upper and more.
If it overcomes this level, the next resistance is only around 1.3013, which is the meeting point of the Pivot Point one-week Resistance 2 and the previous monthly high.
Support awaits at 1.2840, which is the confluence of the Fibonacci 38.2% one-week, the SMA 100-1h, the BB 1h-Lower, and the SMA 5-one-day.
Further down, strong support is at 1.2720, which is where the Fibonacci 161.8% one-day and the PP one-week S1.
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.
