GBP/USD kicks off a new week with modest increases and looks for a new direction as the Brexit vote looms. What’s next? The path of least resistance is to the upside.
The Technical Confluences Indicator shows that cable has considerable support at 1.2703 where we see a dense cluster including the Fibonacci 38.2% one-day, the Simple Moving Average 5-1d, the SMA 200-4h, the SMA 100-15m, and the Fibonacci 61.8% one-month.
Further down, another significant cushion awaits at 1.2670 which is the convergence of the Fibonacci 61.8% one-day, the SMA 100-1h, and the Fibonacci 38.2% one-week.
On the upside, we note modest resistance at 1.2775 with the confluence of the SMA 50-one-day, the Bollinger Band one-day Upper, and the Pivot Point one-day Resistance one-day.
The next upside target is at 1.2850 where the previous month’s high and the Pivot Point one-day Resistance 2 converge.
However, this cap is weaker than the support levels mentioned beforehand.
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.
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