GBP/USD has rallied some 200 pips on hopes that the UK and the EU can reach a Brexit deal. What are the next levels to watch?
The Technical Confluences Indicator is showing that GBP/USD is struggling around 1.2438, which is a dense cluster of lines which includes the Simple Moving Average 50-15m, the Fibonacci 23.6% one-month, the Bollinger Band 15min-Middle, the Bollinger Band 4h-Upper, the SMA 5-15m, and more.
Looking up, the next level to watch is 1.2475, which is where the previous yearly low and the previous daily high converge.
The upside target is 1.2600, which is the meeting point between the Pivot Point one-month Resistance 1 and the previous monthly high.
Looking down, the currency pair enjoys significant support at 1.2374, which is where the Bollinger Band one-hour Middle and the Fibonacci 38.2% one-day.
Lower, 1.2308 is the juncture of the SMA 10-4h and the Fibonacci 61.8% one-day.
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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