GBP/USD has been rising after YouGov’s MRP poll has shown a landslide victory for Prime Minister Boris Johnson. What are the next levels to watch?
The Technical Confluences Indicator is showing that sterling is struggling around 1.2943, which is the convergence of the Pivot Point one-day Resistance 1, the PP 1w-R1, the Simple Moving Average 5-15m, and the Bollinger Band 4h-Upper.
Further up, the pound may target 1.3013, which is where the six-month high converges with the Pivot Point one-day Resistance 3.
Even higher, 1.3050 is where the PP 1w-R2 meets the prices, and at 1.3091 we see the Fibonacci 161.8% one-week.
Looking down, significant support awaits at 1.2882, which is the confluence of the SMA 100-4h, the SMA 1001-h, the BB 4h-Middle, the SMA 50-1h, and the Fibonacci 38.2% one-day.
Lower, another cushion awaits at 1.2822, where the BB 4h-Lower and the previous daily low meet.
This is how it looks on the tool:
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.
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