GBP/USD has recovered after German Chancellor Angela Merkel opened the door to a solution on the controversial Irish backstop topic that the UK government opposes. Can sterling continue higher?
The Technical Confluences Indicator is showing that GBP/USD enjoys some support at 1.2141, which is the convergence of the Simple Moving Average 200-15m, the SMA 50-1h, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the SMA 100-15m.
Stronger support awaits at 1.2215, where we note the confluence of the Fibonacci 38.2% one-week, the SMA 5-1d, and the previous monthly low.
Looking up, only weak resistance awaits at 1.2180, where the Bollinger Band one-day Middle, the BB 15min-Upper, and the previous 4h-high converge.
The next target is 1.2211, where the BB 1h-Upper, the PP 1w-R1, and the PP 1d-R1 meet.