The GBP/USD jumped to higher ground after Barnier said that reaching a Brexit agreement is realistic within six to eight weeks. Can it continue to higher ground?
The Technical Confluences Indicator shows that the pair is currently mired in a dense area of technical levels. The 1.3035-1.3048 area is the congestion of last week’s high, the Simple Moving Average 50-15m, the SMA 10-one-hour, the Bolinger Band 15m-Middle, the Pivot Point one-week Resistance 1, the BB 4h-Upper, the SMA 10-15m, the SMA 5-15m, the 4h-high, the BB 15m-Upper, and last month’s high.
Overcoming this zone opens the door to surging all the way to 1.3163 which is the meeting point of the Pivot Point one-day Resistance 2 and the PP one-week Resistance 2.
Significant support is at 1.2995 which is the confluence of the Fibonacci 38.2% one-day and the Simple Moving Average 100-15m.
There are quite a few additional levels of support to the downside with the most substantial point at 1.2940 which is the convergence of the SMA 100-one-hour, the Fibonacci 38.2% one-week, and the SMA 10-one-day.
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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