GBP/USD has tumbled down and fallen below 1.29 after the Bank of England surprised with an unscheduled double-dose rate cut of 50 basis points. Can cable recover? Not so fast as technicals point to further losses.
The Technical Confluences Indicator is showing that fierce resistance awaits at 1.2915, which is the convergence of the Simple Moving Average 50-15m, the SMA 200-1h, the SMA 10-one-day, and the Fibonacci 38.2% one-month among others.
Additional caps await sterling, with the most significant one being 1.2982, which is a juncture of lines including the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the SMA 5-one-day.
Some support awaits at 1.2842, which is the confluence of the Fibonacci 23.6% one-month, and the Pivot Point one-week Support 1.
The downside target is 1.2735, which is the meeting point of the previous monthly low and the Pivot Point one-day Support 2.
This is how it looks on the tool:
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