With little attention, Sterling continued its upward march and crossed a major hurdle. It now eyes high levels.
The Technical Confluences Indicator shows that the move above 1.3428 if confirmed, suggests a substantial breakthrough. The line is the convergence of the Bolinger Band 15m-Lower, the Fibonacci 38.2% one-day, the Fibonacci 38.2% one-month, the Simple Moving Average 10-15m, and the SMA 5-1h.
The round number of 1.3500 may pose a minor challenge as apart from the psychological importance it is also the Pivot Point one-day Resistance 3, but it only serves as a stepping stone to a higher target above.
1.3562 is already a more significant confluence of the Pivot Point one-week Resistance 3, and the Fibonacci 61.8% one-month, two more considerable lines.
On the downside, 1.3407 is the meeting point of the Bolinger Band 1h-Lower, the 1d-Middle, and the Pivot Point one-week thus serving as an immediate defense to any setback.
Further below, 1.3330 is the congestion of the Fibonacci 23.6% one-week, the SMA 200-1h, the SMA 50-4h, and the SMA 10-one-day.
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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