GBP/USD path of least resistance is up, room for more gains — Confluence Detector

GBP/USD has been gaining ground as the market mood is improving and Boris Johnson is back in Downing Street. Can cable continue higher? 

The Technical Confluences Indicator is showing that pound/dollar enjoys robust support at 1.2408, which is the convergence of the Bollinger Band 15min-Middle, the Fibonacci 61.8% one-week, the BB one-day Middle, the Simple Moving Average 50-4h, and the SMA 100-4h. 

It is followed by another considerable cushion at 1.2350, which is the meeting point of the Fibonacci 38.2% one-week and the Fibonacci 38.2% one-day. 

Resistance – which is weaker than support awaits at 1.2502, which is the confluence of the Pivot Point one-week Resistance 1, the previous weekly high, and the 50-day SMA.

The high target is 1.2593, where the Bollinger Band one-day Upper. 

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