GBP/USD has significant support only at 1.2156— Confluence Detector
GBP/USD remains on the back foot on Tuesday, as the dollar dominates amid the coronavirus crisis. How low can it go? Its positioning looks unfavorable.
The Technical Confluences Indicator is showi9g that GBP/USD faces significant resistance at 1.2265, which is the convergence of the Bollinger Band 1h-Middle, the previous weekly low, the Simple Moving Average 50-15m, the SMA 10-15m, the Fibonacci 23.6% one-day, the SMA 10-1h, and more.
Further up, cable faces several resistance lines, with a noteworthy cap awaiting at 1.2341, which is the meeting point of the Fibonacci 61.8% one-day and the SMA 50-1h.
Weak support is at 1.2208, which is Monday's low, and a more substantial cushion is at 1.2177, where the Pivot Point one-day Support 1 meets the price.
The strongest support line is at 1.2157, which is where the Pivot Point one-month Support 3 hits the price.
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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