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:
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.