Friday January 28, 2005 - 01:49:28 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 28th January 2005 Price:
Resistance: 1.8927 ... 1.8943 ... 1.8980 ... 1.9036
Support....: 1.8843 ... 1.8820 ... 1.8792 ... 1.8745
Cautiously while 1.8840-50 supports there is room for a rally to 1.8983 at least and possibly 1.9036
This morning's break above 1.8885 to reach 1.8927 appears more bullish. Thus we would like to see 1.8840-50 providing support here to allow further gains to be made. Back above 1.8927 would allow a move to 1.8983 at least and we feel to the 1.9036 Fibonacci resistance.
With the break of 1.8885 we feel the downside needs to be put on hold. We see support at 1.8870 which could hold and then again at 1.8840-50 and a breach of this area is required to generate weakness for the Pound. If seen we would then expect losses to continue towards 1.8792 at least and probably down to the 1.8735-55 pivot support area.
Elliott Wave Comments:
28th January 2005
The break of the 1.8885 resistance tends to suggest that the 1.8524 low actually provided an end to the first part of the decline. This would imply a complete pullback to the 1.9548-1.8524 decline with resistance seen at 1.9036 (50%) and at 1.9157 (61.8%) at least.
The only risk to this is that the move since the 1.8644 low has been an expanded flat correction which would imply a cap around 1.8936. However, we tend to give this lo risk weighting.
(c) FX-Strategy Inc 2005
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