GBP/USD has advanced as the Bank of England seemed reluctant to announce drastic rate cuts. How is it positioned on the chart?
The Technical Confluences Indicator is showing that 1.2910 is a critical hurdle. It is a dense cluster of lines including the Bollinger Band one-hour Upper, the Fibonacci 61.8% one-week, and the Fibonacci 38.2% one-month.
The upside target is 1.3024, which is the meeting point of the previous weekly high, the Fibonacci 61.8% one-month, and the 50-day Simple Moving Average.
Looking down, support awaits at 1.2844, which is the meeting point of the Fibonacci 38.2% one-week, the Fibonacci 23.6% one-month, the SMA 5-one-day, and more.
Below, the downside target is 1.2730, where the previous monthly low and the PP one-day Support 2 converge.
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.
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