GBP/USD is attempting a recovery as coronavirus headlines are weighing on the dollar and Brexit concerns limit gains. How is the currency pair positioned?
The Technical Confluences Indicator is showing that robust resistance awaits at 1.2841, which is a dense cluster of lines including the Bollinger Band one-day Lower, the Fibonacci 38.2% one-week, the previous 4h-high, the Fibonacci 23.6% one-month, and more.
If cable overcomes that level, the upside target is 1.2915, which is a convergence of lines such as the Simple Moving Average 50-4h, the Pivot Point one-day Resistance 1, the SMA 200-1h, the Fibonacci 38.2% one-month, the SMA 5-one-day, and more.
Weak support awaits at 1.2801, which is the meeting point of the previous 4h-low, the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, and more.
Lower, the downside target is 1.2727, which is the confluence of the PP one-day S1 and the previous daily low.
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.
Learn more about Technical Confluence
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