GBP/USD is capped after Boris has a bad day— Confluence Detector

Yohay Elam FXStreet

GBP/USD is trading around 1.3150 after Prime Minister Boris Johnson refused to look at a photo of a boy sleeping on a hospital floor. With the focus shifting to health, the Conservatives may lose some support. How is sterling positioned?

The Technical Confluences Indicator is showing that pound/dollar is capped by 1.3157, which is a dense cluster of lines including the Fibonacci 61.8\% one-day, the Bollinger Band 1h-Middle, the BB one-day Upper, the Simple Moving Average 100-15m, the SMA 5-4h, and more.

The next resistance is close. At 1.3171 we note the meeting point of the BB one-hour Upper, the previous weekly high, and the Fibonacci 23.6% one-day.

Further up, the upside target is 1.3246, which is the convergence of the Pivot Point one-week Resistance 1 and the PP one-month R3.

Support awaits at 1.3116, which is the confluence of the SMA 5-1d, the BB 4h-Lower, the PP 1m-R2, the Fibonacci 23.6% one-week, and the PP 1d-S2.

Lower, 1.3068 is where the Fibonacci 38.2% one-week hits the price and 1.3027 is a juncture including the PP 1m-R1 and the SMA 200-1h.

This is how it looks on the tool:

GBP USD Technical Confluence December 10 2019

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.

Learn more about Technical Confluence

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.

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