GBP/USD has fallen to lower ground, succumbing to US dollar strength and it now faces the all-important Non-Farm Payrolls. How is it technically positioned?
The Technical Confluences Indicator is showing that pound/dollar is capped at 1.2958, which is the convergence of the Simple Moving Average 100-15m, the Fibonacci 38.2% one-day and the previous monthly low.
Marginally higher, it faces another resistance line at 1.2978, which is a juncture of lines including the Fibonacci 61.8% one-day, the previous weekly low, and the Bollinger Band 1h-Upper.
Nex,t1.3032 is the confluence of the 5-day SMA and the Fibonacci 23.6% one-month and serves as another cap.
Support awaits at 1.2897. This is the confluence of the 100-day SMA, the Pivot Point one-day Support 1 and the PP one-week Support 2.
All in all, the path of least resistance is down.
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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