The Pound was stricken by the political drama in the UK and especially the resignation of Boris Johnson. However, May’s government seems to be surviving. What’s next for Sterling?
The Technical Confluences Indicator shows that the pair can run to strong resistance at 1.3355 which is the convergence of the Pivot Points one-day Resistance 1, the PP one-week R1, and the Simple Moving Average 50-one-day.
Before tackling that level, it may find some resistance around 1.3315which is the confluence of the Fibonacci 61.8% one-month and the Fibonacci 61.8% one-day.
Looking down, it shows that the pair has a lot of support. 1.3245 is the confluence of the Simple Moving Average 10-1h, the SMA 100-1h, the SMA 50-15m, the Fibonacci 23.6% one-week, the SMA 10-15m, and the SMA 5-1h.
Below, even stronger support awaits at 1.3218 which is the meeting point of the Fibonacci 38.2% one-week, the SMA 100-4h, and the Fibonacci 38.2% one-month.
All in all, there is more support than resistance.
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.