GBP/USD has surged on Tuesday amid a growing sense that the Conservatives are on course to win the elections. Where next for cable?
The Technical Confluences Indicator is showing that pound/dollar faces a hurdle at 1.3121, which is the convergence of the Simple Moving Average 5-15m, the SMA 10-15m, the Bollinger Band 15min-Upper, and the Fibonacci 161.8% one-month.
If GBP/USD manages to pull forward, the next target is 1.3243, which is where the Pivot Point one-month Resistance 3 meets the price.
Support awaits at 1.3032, which is the confluence of the Fibonacci 61.8% one-day, the Bollinger Band one-day Upper, the Pivot Point one-week R2, the SMA 200-15m, and the SMA 50-1h.
Further down, the next cushion is 1.2985, which is a juncture of lines including the previous monthly high, the BB 4h-Middle, the SMA 5-one-day, the PP one-week R1, and the previous daily low.
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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