GBP/USD may drop down to 1.2702 after the BOE's blow — Confluence Detector
GBP/USD has been on the back foot after the Bank of England painted a gloomy picture of the economy and two members voted for a cut. Where next?
The Technical Confluences Indicator is showing that GBP/USD is struggling at the region around 1.2817, which includes the Fibonacci 38.2% one-day, the Simple Moving Average 100-15m, the SMA 5-4h, the Bollinger Band 15min-Upper, the Fibonacci 23.6% one-month, the BB 1h-Middle, the SMA 5-15m, the SMA 10-15m, the Fibonacci 23.6% one-day, and others.
Below, weak support awaits at 1.2737, which is where the Pivot Point one-week Support 2 and the PP one-day S2 converge.
Strong support awaits at 1.2702, which is the confluence of the Fibonacci 161.8% one-week, the Fibonacci 38.2% one-month, and the PP one-day Support 3.
Looking up, GBP/USD faces resistance at 1.2877, which is the convergence of the SMA 100-1h and the SMA 5-one-day.
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.
