GBP/USD may recover as support is stronger than resistance — Confluence Detector
GBP/USD has been losing some ground amid pessimism about reaching a Brexit deal. However, technical levels are pointing to a higher chance of a move to the upside.
The Technical Confluences Indicator is showing that GBP/USD enjoys substantial support at 1.2279, which is the convergence of the Pivot Point one-day Support 1, the Bollinger Band 4h-Lower, the BB 1h-Lower, and the Fibonacci 61.8% one-week.
Resistance, at 1.2317, is somewhat weaker. It is the confluence of the Simple Moving Average 200-1h, the SMA 5-1d, the SMA 1000-1h, the SMA 10-4h, the SMA 200-15m, and the SMA 50-1h.
The next cap is close, but it is also weaker than the 1.2279 support line. At 1.2336, we see the SMA 10-1d, the BB 1h-Upper, and the Fibonacci 38.2% one-week converge.
In case the pound loses 1.2279, it could find support at 1.2228, where the PP 1w-S1 and the PP 1d-S3 meet up.
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.
