GBP/USD volatility has been on the rise in recent days as uncertainty about Brexit is growing. UK prime minister Boris Johnson is set to deliver a crucial speech about Brexit later today. How is the pound positioned?
The Technical Confluences Indicator is showing that GBP/USD enjoys solid support at 1.2261, which is the convergence of the Fibonacci 61.8% one-day, the Bollinger Band four-hour Lower, and the Simple Moving Average 50-one-day.
Further down, some support awaits at 1.2210, which is where the Pivot Point one-week Support 1 and the Fibonacci 61.8% one-month meet the price.
Significantly lower, the pound may find support at 1.2127, which is the confluence of the PP one-week S2 and the Fibonacci 161.8% one-day.
Looking up, immediate resistance is at 1.2285, which is a dense cluster including the BB 15-minutes Middle, the Fibonacci 38.2% one-day, the SMA 200-15min, the SMA 10-1h, the SMA 50-15m, and the BB 4h-Middle among others.
Further up, stronger resistance awaits at 1.2344, which is where the previous daily high and the Fibonacci 38.2% one-month converge.
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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