GBP/USD has been looking for a new direction as markets’ concerns focused on Hong Kong, Italy, and Argentina. Nevertheless, the clock is ticking down to Brexit and both sides are far from reaching a deal. How low can the pound go?
The Technical Confluences Indicator is showing that GBP/USD faces resistance at 1.2071 which is a dense cluster of lines including the Fibonacci 23.6% one-week, the Bollinger Band 15min-Middle, the Simple Moving average 5-1h, the SMA 200-15m, the SMA 50-1h, the Fibonacci 38.2% one-day, the BB 1h-Lower, and more.
Cable faces a minefield of hurdles on the way up with a noteworthy cap at around 1.2110 where the previous daily high, the SMA 5-1d, and the SMA 100-1h all converge.
Looking down, support awaits at 1.2026 where the previous weekly low, the PP 1d-S1 and the previous daily low meet.
The most significant support line awaits only at 1.1952 where we note the confluence of the all-important BB 1d-Lower and the PP one-month Support 1.
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.Get the 5 most predictable currency pairs