GBP/USD may have exhausted the upside

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GBP/USD kicked off the new trading week with a Sunday gap and is trading around 1.2900. Can it extend its gains? Not so fast.

The Technical Confluences Indicator shows that cable faces a dense cluster of resistance lines at 1.2925, where we see the Fibonacci 38.2% one-month, the Simple Moving Average 200-4h, the Bollinger Band 15 minutes Upper, the SMA 5-15m, the SMA 10-1h, the SMA 10-1d, the SMA 10-15m, and the BB 15-minute Middle.

If the pair breaks to higher ground, the next cap is close. At 1.2977 we see the convergence of the Pivot Point one-day Resistance 2 and the PP one-week Resistance 1.

Looking down, some support awaits at 1.2876-1.2895 area where we see the previous 4h low, at SMA 50-4h, the SMA 200-1h, the Fibonacci 23.6% one-day, the SMA 100-1d, and the BB 1h-Middle converge.

Further down, support awaits at 1.2823 which is the meeting point of the Fibonacci 23.6% one-week and the Pivot Point one-day Support 1.

This is how it looks on the tool:

GBP USD technical confluence February 18 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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