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GBP/USD path of least resistance is 1.3340 on election day— Confluence Detector

2019-12-12 14:00    FXYEAH

GBP/USD has been moving higher amid US dollar weakness and expectations for a victory for the Conservatives in the general elections. The technical setup is also favorable. 

The Technical Confluences Indicator faces resistance at 1.3243, which is the convergence of the Pivot Point one-week Resistance 1 and the Bollinger Band one-hour Upper. 

Further up, the next target is 1.3340, which is the meeting point of the Pivot Point one-day Resistance 3 and the PP one-week R2.

Looking down, robust support awaits at 1.3175, which is the confluence of the Simple Moving Average 200-15m, the SMA 50-1h, the SMA 5-one-day, and the Fibonacci 38.2% one-day. 

Another dense cluster of support awaits at 1.3120, where we see the PP one-month R2, the PP one-month R2, the BB 4h-Lower, and the previous daily low.

Overall, the path of least resistance is to the upside. 

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

GBP

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