GBP/USD will find it hard to recover the early 2020 fall— Confluence Detector
GBP/USD is on the back foot at the beginning of 2020, reversing previous gains. Can it recover? Considerable resistance levels await the currency pair.
The Technical Confluences Indicator is showing that immediate resistance awaits at the 1.3124 to 1.3138 region. There is a dense cluster including the Fibonacci 61.8% one-month, the Simple Moving Average 50-15m, the SMA 10-1h, the SMA 100-4h, the Bollinger Band 15min-Middle, the SMA 5-1h, the previous weekly high, the BB 1d-Middle, and other lines.
The next cap is close. At 1.3165, GBP/USD may face the convergence of SMA 5-4h, the Pivot Point one-week Resistance 1, the SMA 5-one-day, and the SMA 100-15m.
Looking down, support awaits at 1.3069, which is the confluence of the SMA 10-1d and the Fibonacci 23.6% one-week.
Lower, the next cushion is at 1.3042, which is where the Fibonacci 38.2% one-week and the Pivot Point one-day Support 2 converge.
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.
