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GBP/USD  has been losing some ground amid pessimism about reaching a Brexit deal. However, technical levels are pointing to a higher chance of a move to the upside.  

The  Technical Confluences Indicator  is showing that GBP/USD enjoys substantial support at 1.2279, which is the convergence of the Pivot Point one-day Support 1, the Bollinger Band 4h-Lower, the BB 1h-Lower, and the Fibonacci 61.8% one-week.

Resistance, at 1.2317, is somewhat weaker. It is the confluence of the Simple Moving Average 200-1h, the SMA 5-1d, the SMA 1000-1h, the SMA 10-4h, the SMA 200-15m, and the SMA 50-1h.  

The next cap is close, but it is also weaker than the 1.2279 support line. At 1.2336, we see the SMA 10-1d, the BB 1h-Upper, and the Fibonacci 38.2% one-week converge.  

In case the pound loses 1.2279, it could find support at 1.2228, where the PP 1w-S1 and the PP 1d-S3 meet up.

This is how it looks on the tool:

GBP USD confluence analysis October 8 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