The pound could struggle to recover above 1.33
Daily Look

The pound could struggle to recover above 1.33

After the Pound suffered alongside the Euro and dropped, it may find it hard to recover even if the common currency moves up.

The  Technical Confluences Indicator  shows that a dense cluster of potent resistance liens awaits at  1.3294: the Simple Moving Average 200-15m, the one-month low, the one-week low, the Pivot Point one-month Support 2, the SMA 50-1h, and the Bolinger Band one-hour Middle (Stdv. 2.2).

Upon a break higher, the next confluence of robust resistance awaits at  1.3370  which is the convergence of the Fibonacci 38.2% one-week, the Bolinger Band 1-hour Upper, and the Simple Moving Average 200-1h.

On the downside, the pair faces support at  1.3230  which is the congestion of the Fibonacci 23.6% one-day, the Bolinger Band 1h-Lower, the Pivot Point one-week Support 3, and the Bolinger Band 15m-Lower.

Even lower,  1.3170  is the Pivot Point one-week and may provide further support if cable loses the 1.3204 low seen on Tuesday.

This is how it looks on the tool:

GBPUSD technical confluence levels May 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

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.