GBP/USD has its battle lines drawn out as the election campaign kicks off — Confluence Detector

GBP/USD has been drifting lower within the range as parliament's dissolution and as campaigning is in full swing. How is cable positioned? The pound is well-balanced. 

The Technical Confluences Indicator is showing that GBP/USD is struggling around 1.2902, which is the convergence of the Simple Moving Average 100-15m, the Bollinger Band 15min-Upper, the SMA 200-1h, the SMA 10-4h, and the SMA 50-4h. 

Resistance awaits at 1.2978, which is the meeting point of the Pivot Point one-day Resistance 3 and the previous weekly high. 

Further above, 1.3013 is the confluence of the previous monthly high and the PP one-week R1. 

Looking down, strong support awaits at 1.2825, which is where the Fibonacci 23.6% one-month and the Fibonacci 161.8% one-day converge. 

This is how it looks on the tool:

Confluence Detector

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