GBP/USD has substantial support only at 1.2098 as PM Johnson is in hospital — Confluence Detector
GBP/USD has been on the back foot as Prime Minister Boris Johnson has been hospitalized after showing ongoing symptoms from coronavirus. How is cable positioned on the chart?
The Technical Confluences Indicator is showing that GBP/USD has some support at 1.2213, which is the convergence of the Bollinger Band 1h-Lower, the BB 4h-Lower, and the previous day's low.
Significant support awaits only at 1.2098, which is the meeting point of the Fibonacci 38.2% one-month, and the Pivot Point one-day Support 2.
Looking up, resistance awaits at 1.2271, which is the confluence of the Fibonacci 23.6% one-week and the Simple Moving average 50-4h.
There are several additional caps that may limit any upside movement, yet the most significant resistance line is at 1.2347, which is a cluster including the SMA 200-15m, the Fibonacci 61.8% one-day, the SMA 50-1h, and the BB 4h-Middle.
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.
