The GBP/USD found some stability on Monday but Tuesday is different with the UK jobs report and the US Retail Sales release. Where will the Pound go?
The Technical Confluences Indicator shows that the GBP/USD has lots of support to the downside but not too many resistance lines to the upside. While many support lines await to the downside, a substantial cluster is at $1.3527 where the Fibonacci 61.8% one-week, the Pivot Point one-day Support 1, and the PP one-month Support 1 meet.
Should the pair extend its drops, $1.3464 is the confluence of the Pivot Point one-day Support 3, the one-month low, the one-week low, and the PP one-week S1.
On the topside, the congestion lines of resistance are not as potent. Nevertheless, the $1.3580 level is worth watching as it is the confluence of the Simple Moving Average 100-15m, the SMA 5-4h, the 4h-high, the SMA 10 1-day, the Fibonacci 23.6% one-week, and the Fibonacci 38.2% one-day.
Beyond $1.3580, there is a lot of air with the only considerable line of resistance awaiting at $1.3700 which is the Pivot Point one-week Resistance 2.
All in all, the pair has stronger lines of support than resistance.
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.
