GBP/USD will find it hard to recover after falling from the highs — Confluence Detector

GBP/USD has dropped below 1.29 after the UK parliament rejected the government's expedited timetable for Brexit, forcing a delay. How is it positioned? The path of least resistance is down. 

The Technical Confluences Indicator is showing that GBP/USD faces fierce resistance at 1.2910, which is a dense cluster of lines including the Simple Moving Average 100-1h, the SMA 5-one-day, the Fibonacci 38.2% one-day, the Bollinger Band one-hour Middle, and the Pivot Point one-month Resistance 2. 

Support awaits at 1.2830 – and it is weaker than resistance. It is the convergence of the BB 1h-Lower, the PP one-day Support 1, and the Fibonacci 38.2% one-week.

Below, the next significant support line is 1.2724, which is the meeting point of the SMA 10-one-day, and the SMA 200-one-day. 

Beyond 1.2910, the next upside target is 1.2990, which is the confluence of the previous weekly high and the previous daily high.

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.

Learn more about Technical Confluence