Confluence Detector suggests GBP/USD is likely to find it hard to recover its recent loss in the forex market

As
per the recent reports, Cable hasn’t started the year on the right foot in the
forex market. In the previous couple of days, one of the most widely traded currency
pair has lost over 200 pips.

As
per the technical analysts, GBP/USD
is going to find it hard to recover the loss it has printed in the past
days. There are multiple strong resistances to hinder its upward rallies from
here on.

Strong
Immediate Resistance Is Located At 1.3124 And 1.3138 Levels

Data-driven
from the Technical Confluences Indicator represents that the currency pair is
to find strong resistance in the short-term around 1.3124 and then at 1.3138
levels. Analysis of the charts shows a dense cluster around the region that
includes Simple Moving Average 50-15m, one-month Fibonacci 61.8%, Simple Moving
Average 10-1h, Bollinger Band 15 min-Middle, Simple Moving Average 100-4h, and
the Simple Moving Average 5-1h. Other lines around the region include Bollinger
Band 1d-Middle and the recent weekly high for the currency pair.

Provided
that the pair breaks above the aforementioned region, another strong resistance
around 1.3165 level will be in sight. A cluster of Pivot Point one-week
resistance 1, Simple Moving Average 5-4h, Simple Moving Average 100-15m, and
Simple Moving Average 5-one-day is likely to converge around this level.

On
the downside, GBP/USD will find strong support around 1.3069 level that
converges one-week Fibonacci 23.6% and SMA 10-1d. The next immediate strong
support is located at 1.3042 level that clusters one-day Pivot Point Support 2
and one-week Fibonacci 38.2%.

An
Insight Into The Confluence Detector

Confluence
Detector is one of the widely known tools for technical experts as it offers
reliable insight into the levels that are likely to act as strong support and
resistance for the currency pairs. Confluence Detector primarily indicates the
levels where multiple indicators like Pivot Points, Fibonacci levels, and
moving averages are likely to converge. An understanding of such convergence
points is an applicable strategy for technical traders both for short- and
long-term investments in the forex market.

It
is important to realize, however, that significant economic data and news is
known to break the stronger technical levels with ease. With the ongoing
Brexit complications and its consequent impact on UK’s and EU’s economy,
the risk of uncertainty and higher than expected volatility remains considerable
in GBP/USD.