GBP/USD will find it hard to recover after falling from the highs “” Confluence Detector

GBP/USD  has dropped below 1.29 after the UK parliament rejected the government’s expedited timetable for Brexit, forcing a delay. How is it positioned? The path of least resistance is down.  

The  Technical Confluences Indicator  is showing that GBP/USD faces fierce resistance at 1.2910, which is a dense cluster of lines including the Simple Moving Average 100-1h, the SMA 5-one-day, the Fibonacci 38.2% one-day, the Bollinger Band one-hour Middle, and the Pivot Point one-month Resistance 2.  

Support awaits at 1.2830 – and it is weaker than resistance. It is the convergence of the BB 1h-Lower, the PP one-day Support 1, and the Fibonacci 38.2% one-week.

Below, the next significant support line is 1.2724, which is the meeting point of the SMA 10-one-day, and the SMA 200-one-day.  

Beyond 1.2910, the next upside target is 1.2990, which is the confluence of the previous weekly high and the previous daily high.

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.

Learn more about Technical Confluence