GBP/USD eyes 1.2312 as the next upside target “” Confluence Detector

GBP/USD  has been on the rise as the chances for a no-deal Brexit are falling after a bill to block a hard exit advanced in parliament. What are the next targets?

The  Technical Confluences Indicator  is showing that GBP/USD is battling a cluster of lines around 1.2242. This includes the previous 1h-low, the Simple Moving average 10-1h, the Fibonacci 23.6% one-month, the SMA 10-15m, the Bollinger Band 15min-Middle, and the Fibonacci 61.8% one-week.

Sterling now eyes 1.2312 as the next target. It is the convergence of the BB 1d-Upper, the previous monthly high, the previous weekly high, the Pivot Point one-month Resistance 1, and the SMA 50-1d.  

Further above, 1.2382 is the next cap where the PP 1d-R2 and the PP 1w-R2 meet.

Looking down, support awaits at 1.2204, which is the confluence of the Fibonacci 38.2% one-month, the SMA 100-15m, and the SMA 10-1d.

Lower, the next cushion is 1.2134, which is where the Fibonacci 61.8% one-month, the SMA 100-1h, and the PP 1d-S1 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.

Learn more about Technical Confluence