GBP/USD may find a bottom only at 1.1966 after Brexit blow, BOE – Confluence Detector

GBP/USD has been on the back foot amid fraught Brexit talks and an open door to negative rates by the Bank of England. Will it continue lower?  

The Technical Confluences Indicator is showing that cable has significant support only around 1.1995, which is an area including the Pivot Point one-week Support 1 and the PP one-month Support 2.

Further down, the next cushion is at around 1.1966, which is the 2019 low. 

Looking up, immediate resistance is at 1.2117, which is the convergence of the Simple Moving Average 5-4h, the previous 4h-high, and the Bollinger Band 15min-Upper. 

A considerable cap is at 1.2167, which is the confluence of the BB one-day Lower, the SAM 10-4h, and the previous monthly low. 

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