GBP/USD enjoys a fantastic week, extending its gains thanks to hopes that the UK avoids a hard Brexit. Reports that the Democratic Unionist Party (DUP) is coming around to supporting the Brexit deal have given the latest push higher. Where can cable go to next?
The Technical Confluences Indicator shows that pound/dollar faces some resistance at 1.3182 which is the convergence of the Pivot Point one-week Resistance 2 and the PP one-day R3.
Further above, 1.3270 is where we find the Pivot Point one-month R3, a stretch target for the pair.
Looking down, some support awaits at 1.3100. Apart from being a round number, the area is a meeting point for the Simple Moving Average 10-1h, the Bollinger Band 15m-Lower, the previous day’s high, and the PP one-day R1.
Massive support awaits around 1.3065 which is a dense cluster including the SMA 200-1d, the SMA 10-4h, the SMA 5-4h, the Fibonacci 61.8% one-day, the Fibonacci 161.8% one-month, the SMA 200-15m, the SMA 50-1h, and the Pivot Point one-month R2.
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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