GBP/USD Targets 1.3048 After German-British Brexit Breakthrough — Confluence Detector

The GBP/USD is shooting higher after reports emerged that the UK and Germany decided to drop key Brexit demands, focusing on a smooth transition and deciding on future trade in the future. What are the next levels to watch in Sterling?

The Technical Confluences Indicator shows that the pair initially needs to overcome a medium-level resistance level at 1.2967. This includes the Fibonacci 61.8 percent one-month, the Fibonacci 38.2 percent one-week and the Pivot Point one-day Resistance 3.

There are additional resistance lines to the upside but the most important one is at 1.3048 which is the confluence of last month's high, last week's high and further above the Pivot Point one-week Resistance 1. 

Looking down, immediate support is at 1.2920 which is a cluster consisting of the Simple Moving Average 100-1h, the PP one-day Resistance 2, and the Fibonacci 161.8 percent one-day. 

Stronger support awaits at 1.2852 which is where the SMA 100-15m, the Fibonacci 38.2 percent one-month, the SMA 10-15m, the SMA 100-4h, and the Fibonacci 61.8 percent one-day converge. 

All in all, the GBP/USD is not at overbought conditions despite the big leap.

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