After May reaches out to Corbyn, GBP/USD may reach higher ground

Apr 03,2019 02:21   Source:Forex Crunch

GBP/USD rose after UK PM Theresa May announced she is making an attempt to break the logjam and reached out to Labour leader Jeremy Corbyn to find a solution. Technical levels are also hopeful for a solution.

The Technical Confluences Indicator shows that cable enjoys significant support at 1.3125 which is the convergence of the Fibonacci 38.2% one-month, the Fibonacci 23.6% one-day, and the Bollinger Band 15min-Lower.

If it breaks lower, further support awaits at 1.3100 where we see the confluence of the BB 1h-Middle, the Fibonacci 38.2% one-day, and the Simple Moving Average 50-one-day.

All in all support is quite substantial.

On the other hand, resistance clusters are weaker. At 1.3158 we see the meeting point of the Bollinger Band 4h-Upper, the Fibonacci 61.8% one-week and the previous daily high.

The next noteworthy juncture is only at 1.3225 where we see the Fibonacci 61.8% one-month, and the Pivot Point one-week R2 converge.

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

This is how it looks on the tool:

GBPUSD April 3 2019 technical confluence levels

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.

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