GBP/USD hit a four-week high on reports that PM Theresa May is set to propose a delay of Brexit. What’s next for cable?
The Technical Confluences Indicator shows that pound/dollar faces some resistance at 1.3153 which is where the previous 4h-high and the Pivot Point one-day Resistance 2 converge.
Yet this is not a significant cap, and the upside target is 1.3215 which is the previous month’s high.
Support is quite close, at 1.3131 where we see the confluence of the Bollinger Band 4h-Upper, the BB 15min-Lower, the PP one-day R1, the SMA 50-15m, and more.
Further considerable support awaits at 1.3090 where the Fibonacci 38.2$ one-day and the Simple Moving Average 10-4h meet.
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.