What’s next for GBP/USD after the recent rally?

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The GBP/USD enjoyed optimism on Brexit and also US Dollar weakness following the weak US inflation report. After topping 1.3100, what’s next?

The Technical Confluences Indicator shows that cable faces significant resistance at 1.3188 where we see the convergence of the Pivot Point one-month Resistance 1, the Pivot Point one-day Resistance 2, and the Simple Moving Average 100-one-day.

Further up, a noteworthy target is 1.3283 which is the Pivot Point one-week Resistance 3.

Significant support awaits at 1.3050 where we see last month’s high, the Bolinger Band four-hour Middle, and the Pivot Point one-day Support 1.

The strongest line of support is only at 1.2975 which is the dense cluster of including the SMA 200-1h, the SMA 50-4h, the SMA 10-one-day, the Fibonacci 161.8% one-day, and the Fibonacci 61.8% one-month.

This is how it looks on the tool:

GBP USD Technical confluence September 14 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.

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About Author

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 the 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.