GBP/USD has kicked off the new week below 1.25 amid criticism about the UK government’s handling of the coronavirus crisis. How is it positioned on the charts?
The Technical Confluences Indicator is battling a cluster of lines at 1.2480, which includes the Bollinger Band 15min-Lower, the Simple Moving Average 5-15m, the SMA 200-1h, the Fibonacci 38.2% one-day, the SMA10-4h, and more.
Close by, 1.2499 is the convergence of the BB 4h-Middle, the Fibonacci 23.6% one-day, and the Fibonacci 61.8% one-week.
Next, 1.2525 is the confluence of the SMA 100-1h, the SMA 5-one-day, and the previous daily high.
Looking down, some support awaits at 1.2455, which is the meeting point of the Fibonacci 61.8% one-day and the 10-day SMA.
Further down, 1.2390 is the next level to watch as it is where the Pivot Point one-week Support 1.
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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