GBP/USD recovery in jeopardy as path of least resistance is down — Confluence Detector

GBP/USD has been attempting a move above the lows as the safe-haven US dollar is sold off. How is it positioned on the chart? This recovery may be in danger.  

The Technical Confluences Indicator is showing that fierce resistance awaits at 1.2522, which is the convergence of the Fibonacci 61.8% one-week, the Pivot Point one-day Resistance 1, the Bollinger Band 15min-Upper, the Simple Moving Average 100-1h, the previous daily high, and more. 

Significant support awaits at 1.2413, which is the meeting point of the previous daily low and the Fibonacci 23.6% one-week. 

Further down, 1.2366 is a strong support line. The Fibonacci 38.2% one-week and the SMA 200-4h converge.

The most significant support line is at 1.2348, which is where the Pivot Point one-day Support 2 hits the price. 

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