Home GBP/USD has a wide range to trade in as the Brexit saga continues
Forex News Today: Daily Trading News

GBP/USD has a wide range to trade in as the Brexit saga continues

GBP/USD  collapsed on the resignation of Dominic Raab but managed to stage a recovery of sorts. As the political circus continues in London, what levels should we watch? The range is quite clear: 1.2700 to 1.2910.

The  Technical Confluences Indicator  shows that immediate resistance awaits at 1.2820 which is the convergence of the Pivot Point one-week Support 2, the Bollinger Band 1h-Upper, and the Fibonacci 23.6% one-month.

The next cluster of resistance is around  1.2910. The area consists of the all-important Fibonacci 38.2% one-month, the Fibonacci 61.8% one-day, the Simple Moving Average 100-1h, the SMA 50-1h, the SMA 10-4h, and the SMA 200-15m.

The pair is struggling around  1.2795  where we see the Bollinger Band 15m-Middle, the SMA 5-1h, the Fibonacci 23.6% one-day, and the SMA 10-15m.

Significant support is only at  1.2700  where we see last month’s low, the Bollinger Band one-day Lower, and the Pivot Point one-month Support 3.

This is how it looks on the tool:

GBP USD technical confluence analysis November 16 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.