GBP/USD 5 levels to watch as the Brexit-chaos continues — Confluence Detector
GBP/USD volatility is high. Cable shot up to nearly 1.34 as Parliament rejected a no-deal Brexit but then cooled down all the way to 1.3250. What's next? Here are five levels to watch, starting from three support lines and moving to two resistance lines.
The Technical Confluences Indicator shows that immediate support awaits at 1.3218 which is the convergence of the Fibonacci 23.6% one-month and the Simple Moving Average 100-15m.
The second support zone is at 1.3163 which is the confluence of the Fibonacci 61.8% one-week, the SMA 10-4h, the SMA 10-1d, the SMA 200-15m, and the SMA 50-1h.
The third and most substantial support line is at 1.3129 which is a cluster consisting of the Fibonacci 38.2% one-month, the SMA 5-1d, the Pivot Point one-day Support 1, the SMA 100-4h, and the Bollinger Band 1h-Lower.
Looking up, initial resistance awaits at 1.3267 which is the meeting point of the SMA 5-1h, the Fibonacci 38.2% one-day, last week's high, and the SMA 50-15m.
The second cap is at 1.3355 where the previous month's high meets the Bollinger Band 1h-Upper.
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.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
