GBP/USD enjoys massive support after falling from the highs — Confluence Detector
GBP/USD has been on the back foot at the beginning of the new week as reports from the intense weekend talks suggest not enough progress has been made. What levels should we watch?
The Technical Confluences Indicator is showing that GBP/USD enjoys significant support at 1.2587, which is a dense cluster including the previous monthly high, the Fibonacci 23.6% one-week, the previous four-hour low, the Fibonacci 38.2% one-day, the Simple Moving average 100-15m, and the Pivot Point one-month Resistance 1.
Further support awaits at 1.2515, which is the meeting point of the Fibonacci 38.2% one-week and the Fibonacci 61.8% one-day.
The initial upside target is 1.2640, which is where the SMA 5-4h and the Fibonacci 23.6% one-day converge.
Next, GBP/USD's upside target is 1.2712, which is the confluence of the previous daily high and the 200-day SMA.
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.
