GBP/USD is trading above 1.29 after opinion polls have shown a narrowing lead for the Conservatives over Labour. With ten days to go until the elections, how is sterling positioned?
The Technical Confluences Indicator is showing that GBP/USD has solid support around 1.29, where we note a dense cluster of lines including the Fibonacci 38.2% one-week, the Simple Moving Average 10-one-day, the Bollinger Band 4h-Middle, the BB 15min-Lower, the SMA 100-1h, the SMA 50-4h, the Fibonacci 61.8% one-day, and the Fibonacci 61.8% one-month.
Looking up, the first noteworthy target is 1.2984, which is the convergence of the Pivot Point one-day Resistance 2 and the PP 1w-R1.
Further above, a trio of pivot points awaits the pound around 1.3025: the PP 1d-R3, the PP one-month R1, and the PP 1w-R2.
Below 1.29, the next significant support line awaits at 1.2857, which is the confluence of the Fibonacci 38.2% one-month and the BB 4h-Lower.
This is how it looks on the tool:
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.
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