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The  GBP/USD  continues holding the high ground on the optimism related to Brexit and amid top-tier UK data. What’s next?

The  Technical Confluences Indicator  shows that the GBP/USD is battling a dense congestion of resistance lines around  1.3150where we see the Simple Moving Average 100-15m, the SMA 5-1h, the Bolinger Band 15m-Middle, the BB 1h-Middle, the SMA 50-15m, the SMA 10-15m, the SMA 10-1h, the SMA 10-4h, the Fibonacci 38.2% one-day, the Fibonacci 61.8% one-day, and quite a few other lines.

Moving up and getting out of the dense area will send cable to tough resistance at  1.3180  where we see the convergence of the Pivot Point one-month Resistance 1, the Pivot Point one-day Resistance 1, the Pivot Point one-week Resistance 1, the Bolinger Band 1h-Upper, and the SM 100-one-day.

If cable overcomes this line, the door is open to running much higher, with the first noteworthy upside target at  1.3289  where we see the Pivot Point one-week Resistance 2.

Looking down, support awaits at  1.3095  where we see the Pivot Point one-day Support 2 and the Fibonacci 23.6% one-week.

It is followed by the round number of  1.3000  which is the meeting point of the SMA 100-4h, the SM 50-one-day and the Fibonacci 61.8% one-week.

This is how it looks on the tool:

GBPUSD Technical confluence September 19 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