GBP/USD is trading below 1.29 as traders await the next opinion polls ahead of the UK elections. Can cable recover? It faces substantial resistance.
The Technical Confluences Indicator is showing that GBP/USD faces fierce resistance at 1.2885, which is the convergence of the Fibonacci 61.8% one-day, the Bollinger Band one-day Middle, the Fibonacci 38.2% one-week, and the Simple Moving Average 100-1h.
Further up, the upside target is at 1.2945, which is the confluence of the Pivot Point one-week Resistance 1 and the PP 1d-R2.
Support awaits at 1.2825, which is the meeting point of the Fibonacci 23.6% one-month and the previous weekly low.
Further down, sterling may target 1.2718, which is where the Pivot Point one-week Support 2 meets 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.
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