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GBP/USD  is leaning lower as uncertainty about Brexit continues and as global trade tops the Trump-Xi Summit agenda. What’s next?

The  Technical Confluences Indicator  shows that cable has support at around  1.2780  which is a dense cluster of technical levels including the Bollinger Band 15 minute Lower, the Fibonacci 23.6% one-day, the Simple Moving Average 5-4h, the BB 1h-Middle, the BB 4h-Middle, the BB 15m-Middle, the SMA 10-15m, and the SMA 10-1h.

Losing this level opens the doors to a gradual drop with substantial support awaiting only at  1.2700  where we see the convergence of the Pivot Point one-day Support 2 and last month’s low.

Recovering from the current trading zone is not easy either. At the round number of  1.2800, we see the confluence of the SMA 10-4h, the Fibonacci 38.2% one-day, the SMA 5-one-day, and other lines that inhibit any movement.

In case GBP/USD runs above 1.2800, fierce resistance awaits at  1.2830  where we see the Fibonacci 38.2% one-week, the Fibonacci 23.6% one-month, and the Pivot Point Resistance 1 converge.

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

This is how it looks on the tool:

GBP USD technical confluence chart November 30 2018

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