Wednesday December 8, 2004 - 01:36:22 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar December 8th 2004 Price: ... 1.9421
Resistance: 1.9440 ... 1.9480 ... 1.9507 ... 1.9532
Support....: 1.9408 ... 1.9379 ... 1.9344 ... 1.9300
We feel the downside is now a greater risk to 1.9300 at least
Price peaked at our ideal 1.9505 target and thus we do not favor the upside today. A return to strength would require a break back above the 1.9440 pivot resistance which would allow a move back towards the 1.9478 corrective high. Only above here would renew an attack on 1.9507 and higher to 1.9562 at least.
The peak at 1.9507 hit our target perfectly and we now concentrate on how the pullback will develop. The loss over the past few minutes of 1.9435-40 should now cause this area to cap and with a loss of the 1.9408 low seen after the 1.9507 peak we will expect losses to continue lower to 1.9379 at least. This may cause a further pullback but eventually we see further losses down through 1.9344 to 1.9300 at least and suspect this lower area may hold.
Elliott Wave Comments:
December 6th 2004
With the direct resumption of the move higher we have adjusted slightly our daily wave count and now consider the rally from this year's low at 1.7450 to 1.8768 to be Wave [i] with the decline to 1.7406 being Wave [ii]. This would imply a Wave [iii] target at 1.9835. We have then re-adjusted the rally from 1.7706 to see completion of Wave [a] at 1.8616, Wave [b] at 1.8375 which implies a target at 1.9847.
December 7th 2004
Yesterday's peak at 1.9507 is now cautiously labeled as Wave a of Wave (v) and thus we should see a day or two of correction which we target to end around the 1.9300 area. A bounce from here would then suggest follow-trhough to end Wave c and Wave (v) at the ideal 1.9828-47 area.
(c) FX-Strategy Inc 2004
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