Thursday December 9, 2004 - 01:45:58 GMT
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FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the British Pound vs U.S. Dollar 9th December 2004 Price: ... 1.9345
Resistance: 1.9380 ... 1.9405 ... 1.9436 ... 1.9467
Support....: 1.9332 ... 1.9295 ... 1.9260 ... 1.9220
We look for 1.9332 to hold for a rally back to 1.9405-30 before a further pullback
The decline to 1.9186 was much deeper than expected but we feel this now completes the larger correction and thus the main thrust should be higher. Indeed, as we write we see price is approaching the 1.9325-32 support and look for this area to hold to generate gains up to 1.9405 at least and possibly 1.9430-36 and possibly as high as 1.9467-1.9500. However, if seen, this higher area should stall any gains.
The drop to 1.9186 was deeper than expected but we feel the larger downward correction is now complete. Only a direct loss of 1.9325 and preferably 1.3295 would cause further losses to take place. Next support is at 1.9260 then the 1.9172-86 corrective lows. Should an earlier move to 1.9405 be seen, we feel this will provide a selling opportunity back to the 1.9295-1.9330 area once again.
Elliott Wave Comments:
December 8th 2004
The drop to 1.9186 suggests that the correction from the 1.9383 high is now complete and this forms Wave (iv) of Wave [c] higher which has an eventual target at 1.9841-47 which represents the end of Wave [iii] as a 161.8% projection of Wave [i] and where Wave [c] = 161.8% of Wave [a]. Wave (v) also has a 61.8% projected target at the same level. Initial gains may stall around the 1.9500 area followed by a pullback to be followed by gains to 1.9633 at least.
(c) FX-Strategy Inc 2004
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