GBP/USD bulls looking at 1.2261 as the next upside target

GBP/USD  has recovered after German Chancellor Angela Merkel opened the door to a solution on the controversial Irish backstop topic that the UK government opposes. Can sterling continue higher?

The  Technical Confluences Indicator  is showing that GBP/USD enjoys some support at  1.2141, which is the convergence of the Simple Moving Average 200-15m, the SMA 50-1h, the Fibonacci 38.2% one-day, the Fibonacci 23.6% one-week, and the SMA 100-15m.

Stronger support awaits at  1.2215, where we note the confluence of the Fibonacci 38.2% one-week, the SMA 5-1d, and the previous monthly low.

Looking up, only weak resistance awaits at  1.2180, where the Bollinger Band one-day Middle, the BB 15min-Upper, and the previous 4h-high converge.

The next target is  1.2211, where the BB 1h-Upper, the PP 1w-R1, and the PP 1d-R1 meet.

GBP/USD eyes  1.2261  as its upside target, where the PP 1d-R2 and the Fibonacci 23.6% one-month hit the price.

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.