GBP/USD has been on the back foot, trading close to the 2019-low. The UK parliament reconvenes and the opposition will try to force the government not leave without a deal. PM Boris Johnson has threatened an election on October 14th if he loses the vote. How is GBP/USD positioned?
The Technical Confluences Indicator is showing that GBP/USD enjoys significant support around 1.2018, where we see the convergence of the previous monthly low, the Pivot Point one-month Support 1, the PP 1d-S1, and the Bollinger Band one-day Lower.
If it falls below this level, the next meaningful cushion is only at 1.1931, where the Pivot Point one-week Support 3 meets the price.
Cable is currently struggling around 1.2037, which is the confluence of the PP 1w-S2, the Simple Moving Average 5-15m, and the SMA 10-15m.
Some resistance awaits at 1.2068, which is where the BB 1h-Middle and the previous 4h-high converge.
Stronger resistance is at 1.2131, which is the confluence of the SMA 200-15m, the SMA 50-1h, and the Fibonacci 61.8% one-month.
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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