GBP/USD is well-positioned ahead of the UK jobs report— Confluence Detector
GBP/USD is looking for a new direction ahead of the all-important UK jobs report. How is it positioned?
The Technical Confluences Indicator is showing that GBP/USD enjoys significant support at 1.2996, which is a dense cluster of lines including the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, the Bollinger Band 15min-Lower, the Simple Moving Average 100-15m, the BB 1h-Middle, and the Fibonacci 23.6% one-day.
Further down, another considerable cushion awaits at 1.2942, which is the confluence of the Pivot Point one-week Support 1 and the PP one-day S2.
Looking up, resistance awaits at 1.3050, where the SMA 10-1d and the PP 1d-R2 meet up.
Further above, the upside target is 1.3128, which is the convergence of the Fibonacci 61.8% one-month and the previous weekly high.
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