GBP/USD has its eyes on 1.2867 as the recovery continues

GBP/USD  is trading higher, extending its recovery amid mixed EU election results. The Brexit party and the pro-Remain parties gained a similar number of votes. Where next?

The  Technical Confluences Indicator  shows that cable is struggling with  1.2741  which is the convergence of the Fibonacci 61.8% one-week, the previous 4h-high, the Bollinger Band 4h-Upper, and the Simple Moving Average 10-15m.

Looking up, the first noteworthy cluster of resistance lines awaits at  1.2820where the previous weekly high and the Pivot Point one-week Resistance 1 meet.

The upside target is  1.2867  which is the confluence of the previous month’s low and the Pivot Point one-month Support 1.

Support awaits at  1.2715  which is a dense cluster including the BB 1h-Middle, the Fibonacci 23.6% one-day, and the previous 4h-low.

Additional support is at  1.2695  which is the meeting point of the SMA 10-4h and the SMA 5-1d.

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.