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After the bad GDP, support for the pound is only at 1.3745

After poor UK GDP knocked the GBP/USD lower, the  Technical Confluences Indicator  shows that clusters of support levels are far and few between. The $1.3745  level may be a more significant one: it is the meeting point of Pivot Point one-week S2 and the Pivot Point one-month S1, both significant long-term levels.

A move below this convergence level may trigger a free-fall.  

Looking up, a dense congestion of lines awaits at $1.3860. This area consists of the Bolinger Band one-day-Lower, the SMA5-15m, the SMA100-one-day, and the Bolinger Band 1h-Lower. Higher above, the $1.3910  level is the confluence of the SMA5-4h, the Fibonacci 61.8% one-month, the Fibonacci 23.6% one-day and more.

The pair is currently in the middle of the range with well-defined levels on both sides.

Here is how it looks:

GBPUSD confluence levels April 27 2018

Confluence Detector

The Confluence Detector finds  interesting 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 Confluences

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.