Friday January 7, 2005 - 00:58:21 GMT
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Forex: Daily Forecast for the British Pound vs U.s. Dollar 7th January 2005 Price:
Resistance: 1.8782 ... 1.8803 ... 1.8836 ... 1.8860
Support....: 1.8726 ... 1.8690 ... 1.8645 ... 1.8627
We expect losses to reach the 1.8645 target today and for a larger recovery from there
Further downside was seen once again yesterday to 1.8696 and for the moment we can only see bullish potential for a pullback ahead of a test of the 1.8645 target. We see resistance at 1.8803 that should be tested and may well hold. We shouild however be aware of a minor risk of a recovery as deep as 1.8836 and thus a stronger bullish scenario requires a break above 1.8836 and then the peaks around 1.8860. Further resistance is then seen at 1.8945-1.8980.
Further downside was seen once again yesterday to 1.8696 and for the moment we can only see bullish potential for a pullback ahead of a test of the 1.8645 target. We see resistance at 1.8803 that should be tested and may well hold. We shouild however be aware of a minor risk of a recovery as deep as 1.8836 but this should be the maximum upside. From this resistance area we look for losses to resume below 1.8725 that should imply losses down to the 1.8645 level. This area should hold and cause a larger pullback higher. Thus only below 1.8620-45 would cause further losses to 1.8556 and lower.
Elliott Wave Comments:
7th January 2005
The intermediate Wave x was much briefer than expected and it appears that the final ABC pattern is underway and should reach the 1.8645 Fibonacci support which represents a 50% retracement of the 1.7744-1.9548 move.
(c) FX-Strategy Inc 2005
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