The GBP/USD is trading above 1.3000 but is losing some ground. Holding onto current levels may be hard and recovering may be even harder.
The Technical Confluences Indicator shows that cable faces significant hurdles to the upside. The first notable one is at 1.3090which is the convergence of the Fibonacci 38.2% one-week, the Simple Moving Average 50-one-day, and the SMA 5-15m.
Further above, a potent confluence awaits at 1.3115 which is the meeting point of the Fibonacci 38.2% one-day, the Simple Moving Average 100-15m, the Bolinger Band one-hour Middle, the BB 15m-Upper, and the SMA 5-4h.
It does not end there: at 1.3145, the Fibonacci 23.6% one-month meets the Pivot Point one-day Resistance 1 in a third strong hurdle.
The support lines to the downside are not that strong. We see the confluence of the Pivot Point one-day Support 1 and the SMA 100-one hour at 1.3071.
Further down, 1.3038 is the Fibonacci 23.6% one-week. And at 1.3015we find the Pivot Point one-month Support 1.
All in all, the path of least resistance is down.
This is how it looks on the tool:
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.