The GBP/USD is licking its wounds after UK PM May sent it lower on Friday and as reports of a snap election are a concern. Where can cable fall to?
The Technical Confluences Indicator shows that the GBP/USD is struggling around 1.3075 which is a dense congestion of levels including the Simple Moving Average 5-4h, the SMA 10-15m, the SMA 50-15m, the Bolinger Band 15m-Middle, and the BB 15m-Lower among others.
Looking down, the pair has some support around 1.3028 where we see the BB-4h, the SMA 100-4h, the BB one-day Middle, and more. However, this is a weak support line.
Stronger support awaits at 1.2988 which is the confluence of the SMA 50-one-day, the Pivot Point one-day Support 1, and the PP one-week Support 1.
On the upside, we see some resistance at 1.3110 which is the Fibonacci 23.6% one-day.
Much stronger resistance awaits at 1.3150 which is the Fibonacci 61.8% one-week, the Fibonacci 38.2% one-day, and the SMA 100 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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