GBP/USD has significant support only at 1.29— Confluence Detector
GBP/USD has been retreating amid dovish comments from various members of the Bank of England. How far can it fall?
The Technical Confluences Indicator is showing that pound/dollar has some support 1.3009, which is the meeting point of the Pivot Point one-day Support 2 and the Bollinger Band 4h-Lower.
Sterling has another cushion at 1.2982, where two pivot points converge: the one-week Support 1 and the one-day Support 3.
Significant support is only at 1.29, which is the confluence between the PP one-week S2 and the previous month's low.
Looking up, resistance is significant. It includes 1.3063, which is the convergence of the Simple Moving Average 10-4h, the Fibonacci 23.6% one-week, and the SMA 200-15m.
Stronger support is at 1.3096, which is a juncture of lines including the BB-one-day-Middle, the SMA 100-1h, the SMA 200-4h, and the SMA 5-one-day.
The most significant cap is at 1.3137, where the SMA 200-1h, the Fibonacci 161.8% one-day, the Fibonacci 61.8% one-month, and the Fibonacci 61.8% one-week.
All in all, the path of least resistance is to the downside.
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.
