GBP/USD looks vulnerable ahead of another rocky day in parliament — Confluence Detector

GBP/USD has kicked off the week on the back foot after the UK parliament forced the UK government to ask for a Brexit extension. The battle in parliament continues today. How is cable positioned? 

The Technical Confluences Indicator is showing that GBP/USD now faces an uphill battle. It faces robust resistance at 1.2902, which is the convergence of the Fibonacci 61.8% one-day, the Simple Moving Average 10-4h, the Bollinger Band 15-minutes Lower, and the previous 4h-low.

An even more considerable hurdle awaits at 1.2935, which is the meeting point of the BB one-day Upper, and the Fibonacci 38.2% one-day. 

Looking down, GBP/USD has significant support at 1.2880, which is the confluence of the SMA 50-1h, the Fibonacci 23.6% one-week, and the Pivot Point one-day Support 1.

If it loses that line, only weak support awaits at 1.2815, which is where the Fibonacci 38.2% one-week and the SMA 100-1h converge. 

All in all, the path of least resistance is down. 

This is how it looks on the tool:

GBP USD confluence analysis October 21 2019

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

Dollar in trouble, EUR/USD recovers the 1.1000 level

The American currency came under selling pressure, although the EUR/USD pair is a laggard, barely above the 1.1000 figure. Trump´s impeachment process seems to be behind the latest slide.


GBP/USD approaches 1.2900 as the greenback eases

The GBP/USD pair is at fresh weekly highs in the 1.2880 region, as speculative interest moved away from the dollar, and in spite of poor UK data.


USD/JPY slumps to fresh 10-day lows near 108.30 on falling US T-bond yields

The USD/JPY pair came under renewed bearish pressure during the American tracing hours and slumped to its lowest level in ten days at 108.25 as the dismal market mood allowed the JPY to continue to gather strength against its rivals as a safe haven.


Gold: the $1,470 regions caps the upside

Prices of the precious metal keep the positive performance in the second half of the week, although the $1,470 region continues to cap the upside for the time being.

Gold News

Crypto bulls and bears meet at the crossroads

Cryptocurrencies are experiencing sharp falls among the main actors of the top-three cryptos by market capitalization. If in the past few days XRP was the top representative of fear, now red is also the color of Bitcoin and even Ethereum.

Read more