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GBP/USD: after the first attempt failed, falling under 1.30 may be harder

The GBP/USD dropped to 10-month lows and got very close to 1.3000. However, after the pair stabilized, it has a lot of support above the round number.

The  Technical Confluences Indicator  shows that the pair has significant support at  1.3055, the convergence of last month’s low, the Fibonacci 38.2% one-day, the Simple Moving Average 5-4h, and the Bolinger Band 1h-Middle (Standard Deviation 2.2).

Should this line collapse, there is another significant support level  1.3015. This is the confluence of the one-day low, the Pivot Point one-day Support 1, the Pivot Point one-month Support 1, and the Bolinger Band 4h-Lower. Should this line break, it would be a free fall.

Looking up, climbing seems somewhat easier. The pair may be capped around  1.3151  which is the Fibonacci 23.6% one-month and is in close proximity to the Bolinger Band 4h-Middle and the Fibonacci 23.6% one-week.

More robust resistance awaits at  1.3212  which is the congestion of the Simple Moving Average 50-4h, the SM 200-1h, the Fibonacci 38.2% one-month, the Fibonacci 38.2% one-week, and the Bolinger Band one-day Middle.

This is how it looks on the tool:

GBP USD confluence technical analysis July 19 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

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.