GBP/USD has been extending its gains as the prospects of a hard Brexit are diminishing. What technical levels does the currency pair face?
The Technical Confluences Indicator is showing that GBP/USD faces fierce resistance at 1.2478, which is the convergence of the Bollinger Band 1h-Middle, the BB 15min-Middle, the previous yearly low, and the Simple Moving Average 5-1h.
If it breaks higher, the only noteworthy cap is 1.2608, which is the meeting point of the Pivot Point one-week Resistance 1 and the PP 1m-R3.
Immediate support awaits at 1.2460, which is the confluence of the BB one-day Upper, the SMA 100-15m, and the PP 1m-R2.
Further support awaits at 1.2434, where we see the Fibonacci 38.2% one-day and the BB 1h-Lower converge.
Far lower, GBP/USD has support at 1.2330, where the previous daily low, the SMA 200-1h, and the PP 1w-S1 hit the price.
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.
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