GBP/USD faces fierce resistance as parliament reconvenes — Confluence Detector

GBP/USD is trading in the mid-1.2400s, as the dust settles from the UK Supreme Court's decision that parliament prorogation was unlawful. As the House of Commons reconvenes today, the pound's technical position is unfavorable.

The Technical Confluences Indicator is struggling around 1.2465, which is a dense cluster of levels, including the Pivot Point one-month Resistance 2, the Bollinger Band 15min-Lower, the previous 1h-low, the Simple Moving Average 200-1h, and the SMA 5-15m. 

Further up, fierce resistance caps GBP/USD at 1.2483, where the convergence of the SMA 100-1h, the BB 1h-Middle, the SMA 5-4h, the SMA 50-15m, the SMA 10-1h, and the Fibonacci 23.6% one-day. 

If it manages to break higher, further resistance is at 1.2509, which is the confluence of the previous daily high and the BB 1h-Upper. 

Looking down, significant support awaits only at 1.2386, which is the meeting point of the Pivot Point one-day Support 2 and the PP 1w-S1.

The downside target is 1.2315, where we see the previous monthly high and the PP 1m-R1 meet 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