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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:

GBP USD technical confluence October 2 2019

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