GBP/USD remains under pressure ahead of the Non-Farm Payrolls— Confluence Detector
GBP/USD has been hit by a dovish speech from Mark Carney, Governor of the Bank of England. The US Non-Farm Payrolls is now awaited. How is the currency pair positioned?
The Technical Confluences Indicator is showing that pound/dollar faces fierce resistance at 1.3138, which is the convergence of the Fibonacci 61.8% one-month, the Simple Moving average 10-one-day, the Fibonacci 38.2% one-week, and the SMA 50-4h.
Further above, 1.3200 is the next hurdle. It is the meeting point of the Fibonacci 161.8% one-day and the Fibonacci 61.8% one-week.
Noteworthy support awaits at 1.3015, where we see the confluence of the Pivot Point one-day Support 1, the previous daily low, and the SMA 50-one-day.
Further down, 1.2928 is the downside target. It is where the PP one-month Support 1 meets the price.
Overall, resistance is stronger than support.
This is how it looks on the tool:
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