The GBP/USD kicked off the new week with a Sunday gap, trading on higher ground. Expectations for a Brexit deal are rising. What levels should we watch?
The Technical Confluences Indicator shows that cable faces immediate resistance around 1.3050 where we see the convergence of the Simple Moving Average 200-4h, the SMA 100-one-day, and the Fibonacci 61.8% one-month.
The next level to watch is 1.3125 which is the convergence of the Pivot Point one-day Resistance 3, the PP one-month R1, the Bollinger Band 4h-Upper, and the PP one-week R1.
Looking down, immediate support is at 1.2990, just under the round number of 1.3000. The cushion consists of the Fibonacci 38.2% one-day, the SMA 5-1h, the Bollinger Band 1h-Middle, the BB 15-Middle, the SMA 10-15m, the SMA 50-15m, and other levels.
The next support line is around 1.2915 which is a cluster including the Fibonacci 38.2% one-week, the Fibonacci 38.2% one-month, and the Bollinger Band 4h-Middle.
All in all, support lines are stronger than resistance ones. The path of least resistance is to the upside.
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.
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