GBP/USD path of least resistance is down amid BOE speculation— Confluence Detector
GBP/USD is looking for s new direction as speculation about the upcoming Bank of England decision rocks the pound. How is the currency pair positioned?
The Technical Confluences Indicator is showing that pound/dollar is capped at 1.3134, which is the convergence of the Simple Moving Average 5-15m, the SMA 10-4h, the Fibonacci 61.8% one-day, the Fibonacci 61.8% one-month, and more.
Support is somewhat weaker. At 1.3100, the confluence of the Pivot Point one-day Support 1, the previous daily low, and the SMA 200-4h is seen.
The upside target is 1.3223, which is the meeting point of the Bollinger Band one-day Upper and the Fibonacci 161.8% one-week.
Looking down, support awaits at 1.3058, which is where the 50-day SMA and the Fibonacci 61.8% one-week converge.
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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