Search ForexCrunch

The  GBP/USD  is consolidating the losses from the US Dollar storm last week. A new week begins with the UK budget standing out. The pair is trading

The  Technical Confluences Indicator  shows that the GBP-USD faces resistance around  1.2855, which is the convergence of the Fibonacci 23.6% one’week, the Bollinger Band one-hour Upper, and the Pivot Point one-day Resistance 1.

The bottom end of the range is  1.2821  where we see the confluence of the Fibonacci 38.2% one-day, the Simple Moving Average 10-4h, the SMA 100-15m, the Bollinger Band 1h-Middle, and the Fibonacci 23.6% one-day.

Looking beyond this narrow range, substantial resistance awaits at  1.2900  where the Fibonacci 38.2% one-week coincides with the SMA 100-1h and the SMA 5-one day.

Lower support awaits at  1.2780  which is the previous day’s low and the Pivot Point one-month Support 1.

The path of least resistance is to the downside.

This is how it looks on the tool:

gbp usd technical confluence October 29 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