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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:

GBP USD September 3 2019 technical confluence

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