GBP/USD may have bottomed out after ignoring bad news

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GBP/USD trades steadily at the 1.2700 handle, shrugging off the government’s defeat in Parliament. Cable’s strength is also evident in the charts.

The Technical Confluences Indicator shows that GBP/USD has significant support in the 1.2689-1.2702 range. The dense cluster of technical lines includes the Simple Moving Average 50-4h, the Bollinger Band 1h-Lower, yesterday’s low, the SMA 100-1h, the SMA 10-1d, the Fibonacci 61.8% one-month, the SMA 200-4h, the SMA 200-1h, the SMA 5-1d, and the Pivot Point one-day Support 1.

Close by, further support awaits at 1.2675 where we see the meeting point of the Fibonacci 38.2% one-week and the BB 1d-Middle.

Looking up, cable faces immediate resistance at 1.2742 where we see the convergence of the BB 4h-Middle, the SMA 10-15m, the BB 15m-Middle, the SMA 5-15m, the SMA 100-15m, the SMA 5-4h, and the Fibonacci 38.2% one-day.

Further resistance awaits at 1.2781 which is the confluence of the Pivot Point one-day Resistance 1 and the Bollinger Band one-day Upper.

All in all, support is far more significant than resistance.

This is how it looks on the tool:

GBP USD technical confluence January 9 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.

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About Author

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 the 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.

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