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1.2777 is the next downside target for GBP/USD

The GBP/USD extended its falls and collapsed below 1.2900 as a no-deal Brexit looks more real.

The  Technical Confluences Indicator  shows that the GBP/USD has lots of resistance lines on the way up. The initial hurdle awaits at around  1.2900  which is the convergence of the Bolinger Band one-day Lower, the BB 1h-Upper, the 4h high, and the Fibonacci 38.2% one-day.

The next cap is at  1.2937  which is the confluence of the Pivot Point one-month Support 1, the BB 4h-Middle. And this is not the end of the battle towards 1.3000 as we see a dense cluster of lines at  1.2964  which is last month’s low, the one-day high, the Simple Moving Average 100-1h, and the SMA 5-one-day.

On the downside, we find  1.2857  as the Pivot Point one-week Support 2, the one-day low, the Bolinger Band 1h-Lower, the BB 4h-Lower, and the BB 15m-Lower.

The  next  substantial support line is only at  1.2777  which is the 52-week low among other minor levels. Further down, 1.2737 is the Pivot Point one-day Support 3 and the PP one-week S3.

This is how it looks on the tool:

GBP USD technical confluence August 9 2018

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.

Learn more about Technical Confluence

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.