GBP/USD has improved its position ahead of inflation data— Confluence Detector
GBP/USD has been able to recover and recapture 1.30 ahead of UK inflation figures. How is it positioned?
The Technical Confluences Indicator is showing that pound/dollar is sitting above a cluster of support lines at 1.3018, an area which includes the previous weekly low, the Bollinger Band one-hour Middle, the Fibonacci 23.6% one-day, the Simple Moving Average 5-4h, and the BB 15min-Lower.
If it rises from this level, substantial resistance awaits at 1.31, which is the convergence of the SMA10-one-day, the Fibonacci 38.2% one-week, and the SMA 200-4h.
Further above, the upside target is 1.3133, which is the confluence of the Fibonacci 61.8% one-week, the Pivot Point one-day Resistance 3, and the Fibonacci 61.8% one-month.
Below 1.3018, GBP/USD has strong support at 1.2897, a juncture of lines including the PP one-day S3, the PP one-week S2, and the previous monthly low.
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.
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