The GBP/USD is looking for a new direction as markets await further news on Brexit negotiations. What’s next?
The Technical Confluences Indicator shows that pound/dollar is trading just around the dense cluster around 1.2850 which includes the Fibonacci 38.2% one-month, the Simple Moving Average 100-15m, the SMA 100-4h, the 4h-low, the Fibonacci 61.8% one-day, the Pivot Point one-week Support 1, and the Bolinger Band one-day-Middle.
Should the GBP/USD bounce, resistance is at 1.2920 which is the confluence of the PP one-day Resistance 2, the Fibonacci 161.8% one-day, and the Fibonacci 61.8% one-week.
Further resistance awaits at 1.2960 which is the meeting point of the Fibonacci 61.8% one-month and the Fibonacci 38.2% one-week.
Looking down, noteworthy support is around 1.2787 which is the convergence of the PP one-day Support 2, the BB 4h-Lower, and the Fibonacci 23.6% one-month.
The next support confluence is only around 1.2700 where we see the Fibonacci 161.8% one-week and the Pivot Point one-month
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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