GBP/USD has kicked off the week above 1.30 and is looking for a new direction amid acrimonious Brexit headlines. While fundamentals seem adverse, technical levels look promising.
The Technical Confluences Indicator is showing that pound/dollar is sitting just above 1.3040, which is the convergence of the Bollinger Band 1h-Middle, the Simple Moving Average 100-15m, the SMA 5-4h, and the Fibonacci 61.8% one-day.
Further down, a dense cluster awaits between 1.3015 and 1.3028. This includes the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, the BB one-day Middle, the SMA 100-4h, the Fibonacci 23.6% one-day, the BB 4h-Middle, the Pivot Point one-day Support 1, and the PP one-month S1.
Looking up, resistance awaits at 1.3075, which is the meeting point of the previous one-week high, the 50-day SMA, the PP one-day R1, and the Fibonacci 38.2% one-month.
Higher, 1.3150 is where the PP one-day R3 and the Fibonacci 61.8% one-month converge, and it serves as an upside target.
This is how it looks on the tool:
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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