GBP/USD eyes 1.1960 as next upside target after Senate stimulus bill— Confluence Detector
GBP/USD is trading above 1.18, as the safe-haven US dollar is pressured. The US Senate agreed on a $2 trillion deal to curb the economic impact of coronavirus, and markets are cheering. How far can cable go?
The Technical Confluences Indicator is showing that initial resistance awaits at 1.1880, which is the convergence of the Pivot Point one-day Resistance 1, the Bollinger Band 4h-Upper, and more.
The upside target is at 1.1960, which is where the 2019 trough converges with the PP one-day R2.
Support awaits at 1.1794, which is the confluence of the Fibonacci 38.2% one-week and the Simple Moving Average 10-1h.
Next, 1.1732 is another cushion, where the SMA 100-15m and the Fibonacci 23.6% one-day 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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