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GBP/USD faces two hurdles on the way to 1.30

The  GBP/USD  has an upbeat start to November, thanks to optimism for a Brexit deal on financial services. Can cable reach 1.3000? Not that fast.

The  Technical Confluences Indicator  shows that the GBP/USD faces resistance at  1.2903  where we see the convergence of the potent Fibonacci 38.2% one-week, the Pivot Point one-day Resistance 2, and the Fibonacci 38.2% one-month.

Should Sterling shoot above this fierce level, it has one more hurdle ahead of 1.3000:  1.2970  is the confluence of the Pivot Point one-day Resistance 3, and the Fibonacci 61.8% one-week.

The next cap is already above the round number:  1.3023  is the meeting point of the PP one-week R1, the Bollinger Band one-day Middle, and the Simple Moving Average one-day.

Looking down, support awaits at  1.2850  where the Fibonacci 23.6% one-week and the Bollinger Band 15min-Middle converge.

1.2836  is the next cushion featuring the BB 15m-Lower, the PP 1D-R1, and the Fibonacci 23.6% one-month.

This is how it looks on the tool:

Pound dollar confluence November 1 2018

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

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.