GBP/USD has been recovering as tensions in the Middle East have not turned into an outright war. Where next for cable?
The Technical Confluences Indicator is showing that pound/dollar is trading above a massive cluster of support at 1.3142, which includes the Bollinger Band 1h-Lower, the Simple Moving Average 50-4h, the Fibonacci 38.2% one-day, the Fibonacci 61.8% one-month, and the Fibonacci 38.2% one-week.
Looking up, significant resistance awaits at 1.3223, which is the convergence of the Pivot Point one-week Resistance 1, the PP one-day R1, and the BB 4h-Upper.
The next noteworthy cap is 1.3285, which is the confluence of the Fibonacci 38.2% one-month and the previous weekly high.
Looking down, additional support awaits at 1.31, which is where the PP one-day Support 1, the SMA 10-one-day, and the SMA 100-4h meet.
Overall, the path of least resistance is up.
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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