GBP/USD path of least resistance is down at the dawn of the EU Summit — Confluence Detector
GBP/USD has been settling around 1.28 as UK-EU Brexit negotiations reach the all-important leaders' summit. How is cable positioned? It seems somewhat vulnerable.
The Technical Confluences Indicator is showing that the most significant convergence of lines is at 1.2840, serving as resistance. The cluster includes the previous four-hour high, the Pivot Point one-week Resistance 1, and the Bollinger Band 15-minute Upper.
Support awaits at 1.2795, and it is somewhat weaker. The confluence includes the Fibonacci 38.2% one-day and the Simple Moving Average 100-15m.
Lower, the next substantial support line awaits at 1.2715, which is the meeting point of the previous weekly high, the SMA 200-one-day, and the PP one-day S1.
The upside target is 1.2908, which is where the Pivot Point one-month Resistance 2 meets the price.
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.
