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GBP/USD  has kicked off the week on the back foot after the UK parliament forced the UK government to ask for a Brexit extension. The battle in parliament continues today. How is cable positioned?  

The  Technical Confluences Indicator  is showing that GBP/USD now faces an uphill battle. It faces robust resistance at 1.2902, which is the convergence of the Fibonacci 61.8% one-day, the Simple Moving Average 10-4h, the Bollinger Band 15-minutes Lower, and the previous 4h-low.

An even more considerable hurdle awaits at 1.2935, which is the meeting point of the BB one-day Upper, and the Fibonacci 38.2% one-day.  

Looking down, GBP/USD has significant support at 1.2880, which is the confluence of the SMA 50-1h, the Fibonacci 23.6% one-week, and the Pivot Point one-day Support 1.

If it loses that line, only weak support awaits at 1.2815, which is where the Fibonacci 38.2% one-week and the SMA 100-1h converge.  

All in all, the path of least resistance is down.  

This is how it looks on the tool:

GBP USD confluence analysis October 21 2019

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