The Pound managed to stabilize and got off the lows. But where will it go next? As the day that services sector data are published, the GBP/USD faces tough hurdles.
The Technical Confluences Indicator shows that the pair faces a very dense cluster of resistance lines around 1.3340. This is the confluence of the Bolinger Band one-hour-Middle, the Simple Moving Average 50-1h, the SMA 200-15m, the Fibonacci 38.2% one-day, the SMA 100-15m, the Bolinger Band one-hour-Middle, the Fibonacci 23.6% one-week, the SMA 10 one day, and the SMA 5-4h.
If the pair does overcome this dense cluster, the next cap is at 1.3429 which is the convergence of the all-important Fibonacci 38.2% one-month and the Bolinger Band one-day Middle.
The pair faces immediate support around 1.3304 which is the confluence of the Simple Moving Average 5-one day, the Fibonacci 38.2% one-week, and the one-day high.
Yet if Sterling loses this area, there are only weak lines of support until 1.3207 which is the congestion of the one-month low, the one-week low, and the Bolinger Band one-day Lower.
The pair is around 100 pips off the lows, but an extended recovery may be hard.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD trims losses and approaches 1.1380
The US Dollar now succumbs to the re-emergence of the selling pressure and allows EUR/USD to recoup part of the ground lost and approach to the 1.1380 zone on Thursday. Earlier on Thursday, the ECB matched estimates and lowered its rates by 25 bps.
GBP/USD extends the daily recovery, looks at 1.3300
The upside impulse in the British pound remains everything but abated and now propels GBP/USD to the upper end of the range, shifting its attention to recent yearly peaks near 1.3300 the figure.
Gold breaks below $3,300, daily troughs
Further improvement in the sentiment surrounding the risk-associated universe put Gold prices to the test on Thursday. Indeed, the troy ounce of the precious metal faces increasing downside pressure and breaches the key $3,300 mark to hit new daily lows.
Crypto market cap fell more than 18% in Q1, wiping out $633.5 billion after Trump’s inauguration top
CoinGecko’s Q1 Crypto Industry Report highlights that the total crypto market capitalization fell by 18.6% in the first quarter, wiping out $633.5 billion after topping on January 18, just a couple of days ahead of US President Donald Trump’s inauguration.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.