In the short term this is a good technical move.
The ECB meeting/US Data will really determine where this pair is headed in the medium term.
Well in short a confluence zone is a part of fibonacci analysis. It is when we have multiple retracement levels as support or resistance in that area. As you can see above that is a zone of resistance so we know that price SHOULD NOT go in that area and if it does than it invalidates the downward trend. If you would like to learn more about fibonacci analysis I encourage you to read Constance browns Fibonacci Analysis you can search it on Google and there is a free pdf version that includes harmonic and gann analysis as well.
Good luck trading!