GBP/USD has been on the back foot after weak UK data and concerns about Brexit. Where next?
The Technical Confluences Indicator is showing that cable is struggling around the 1.2998 area, which is the convergence of the Bollinger Band 15min-Lower, the Simple Moving Average 5-15m, and the SMA 10-15m.
Looking down, significant support awaits at 1.2943, which is where the Pivot Point one-day Support 2, and the PP one-week S1 meet.
Looking up, robust resistance is at 1.3019, which is the confluence of the Fibonacci 38.2% one-week, the BB 1h-Middle, the previous daily low and the SMA 5-4h.
Higher, pound/dollar faces several hurdles, with the most important juncture waiting at 1.3056, which is where the BB 1h-Upper, the Fibonacci 38.2% one-day, and the Fibonacci 61.8% one-week all hit the price.
This is how it looks on the tool:
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.
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