GBP/USD path of least resistance is down after hitting 1.2900

GBP/USD  is trading around 1.2900 after surrendering to the dollar and as cross-party Brexit talks are not going anywhere fast. The technical levels look bearish.

The  Technical Confluences Indicator  shows that cable faces resistance at  1.2923  which is the convergence of the Fibonacci 38.2% one-day, the Bollinger Band 1h-Middle, and the BB 1d-Lower.

Further above, fierce resistance awaits at  1.2963  which is a dense cluster including the Simple Moving Average 5-1d, the BB 4h-Middle, the BB 1h-Upper, the SMA 100-1d, the SMA 200-1d, the previous daily high, and the SMA 100-1h.

The door to the downside is more open. Some support is at  1.2890  which is the confluence of the BB 4h-Lower, the previous 4h-low, the BB 1h-Lower, the Pivot Point one-week S2, and the previous daily low.

If GBP/USD loses this line, the downside target is  1.2802where the PP 1d-S3 meets the PP 1w–S3.

All in all, the path of least resistance is to the downside.

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.