GBP/USD has been edging higher amid a more upbeat market mood and as UK Prime Minister Boris Johnson’s condition has improved after the third night in intensive care. How is cable positioned on the technical chart?
The Technical Confluences Indicator is showing that pound/dollar is trading within a range between 1.2376 to 1.2388, which is a cluster of lines including the Simple Moving average 5-4h, the Bollinger Band 1h-Middle, the Fibonacci 38.2% one-day, and the Fibonacci 61.8% one-week.
Looking up, the first target is 1.2427, which is the convergence of the BB 1h-Upper, the BB 4h-Upper, and the Pivot Point one-week Resistance 1.
The next cap is at 1.2479, which is the previous week’s high, followed by 1.2517, where the Fibonacci 61.8% one-month hits the price.
Support awaits at 1.2350, which is the confluence of the BB 1h-Lower, the SMA 50-4h, the SMA 10-one-day, and the Fibonacci 61.8% one-day.
Further down, another cushion awaits at 1.2311, where the Fibonacci 38.2% one-week and the PP one-day Support 1 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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