GBP/USD eyes 1.3142 as an upside target if the Brexit vote passes — Confluence Detector
GBP/USD is trading around 1.30 and awaiting a critical vote on Brexit in the UK parliament. The technical battle lines are drawn.
The Technical Confluences Indicator is showing that initial resistance awaits at 1.2994, which is the convergence of the previous 4h-high, the previous weekly high, the Simple Moving Average 5-15m, and the Bollinger Band 15min-Upper.
The next cap is 1.3027, which is the meeting point of the Pivot Point one-day Resistance 1 and the BB 4h-Upper.
GBP/USD's upside target is 1.3142, which is where the Pivot Point one-week Resistance 1 meets the price.
Support awaits at 1.2906, which is the confluence of the BB 4h-Middle and the PP one-month Resistance 2.
Lower, robust support awaits at 1.2879, which is the juncture of the previous daily low, the SMA 100-1h, and the Fibonacci 23.6% one-week.
All in all, the path of least resistance is down.
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.
