GBP/USD ready to bounce? Strong support is near – Confluence Detector
GBP/USD has been on the back foot amid a risk-off mood and concerns about the UK government's handling of loosening the lockdown. How it cable positioned on the charts?
The Technical Confluences Indicator is showing that strong supports awaits at 1.2291, which is the convergence of the Pivot Point one-week Support 1, the PP one-month S1, and the Bollinger Band 4h-Lower.
If GBP/USD loses that line, the next cushion is at 1.2170, which is the meeting point of the previous monthly low and the PP one-week S2.
Some resistance is at 1.2323, which is the confluence of the Fibonacci 23.6% one-day, the Simple Moving Average 5-1h, Fibonacci 23.6% one-week, and the SMA 5-4h.
The next cap is 1.2355, which is a juncture including the Fibonacci 61.8% one-month, the BB 15min-Upper, the Fibonacci 38.2% one-week, the SMA 100-15m, and the BB 1h-Upper.
Further up, the next target is 1.2438, which is where the BB one-day Middle, the SMA 10-one-day, and the previous daily high.
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.
