GBP/USD – Hopping around between Carney and HM the Queen – Confluence Detector

GBP/USD has been trading in a narrow range between $1.31295 and $1.30593 for the past two days. The situation suggests that today's BOE decision is being awaited by traders. Hours later, Her Majesty the Queen is scheduled to speak, reading the speech prepared by PM Boris Johnson.

The GBP/USD pair is currently trading at the $1.30973 price level. 

According to the Confluence Detector, the range is limited by the presence of, among other technical obstacles, the 61.8% daily and 161.8% monthly level of the Fibonacci retrocession system, the monthly R2 level and the daily R1 level of the Pivot Points system and yesterday's high.

On the support side, the 38.2% daily level of the Fibonacci retracement system and the S1 weekly level of the Pivot Points system seem insufficient to sustain the price if the BOE decision displeases the market.

If the market moves higher, the next major confluence level is beyond the $1.32 level, while if sales appear the price will find support just above the $1.30 price level.

Here 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. These weightings mean 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