Thursday February 10, 2005 - 00:53:11 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the British Pound vs U.S. Dollar 10th February 2005 Price:
Resistance: 1.8633 ... 1.8667 ... 1.8680 ... 1.8715
Support....: 1.8572 ... 1.8545 ... 1.8510 ... 1.8462
Cautiously we look for the recovery to reach 1.8667-80 with a small risk of 1.8715 before the downside resumes
A spike was seen to 1.8643 yesterday but then a deep pullback to 1.8545. However, until this support level breaks we feel the greater risk is for further gains that should move higher towards 1.8633 initially and then to the 1.8667-80 area. We feel this area could cap and thus care needs to be exercised. Only above 1.8680 would see 1.8715 before lower. Further resistance is found at 1.8755-85.
The corrective pullback continues and we feel this has a little further to go with our favored cap at 1.8667-80. However, we should allow for 1.8715. From this resistance area we look for losses to resume and would be confirmed on a move below 1.8590 and then 1.8545. This should then allow losses down to 1.8440-60 at least. Further support is then found at 1.8390 & 1.8330.
Elliott Wave Comments:
7th February 2005
The past week has not shown too much movement in either direction and certainly not enough to confirm whether the longer term downside is about to resume. It is possible that the 1.8524 low can be labeled Wave [a] and thus the 1.8927 will be Wave [b] except this is an exceptionally shallow recovery to the decline from the 1.9548 peak. Indeed, a move below the 1.8612-24 corrective lows would be needed to confirm further downside. Certainly a move below 1.8654 would cause losses to the 1.8524-40 level at least.
8th February 2005
The drop to 1.8546 appears to have completed a wave -iii- from 1.8927 and thus we expect further downside. However, first look for a Wave -iv- to develop that has Fibonacci levels at 1.8689 (38.2%) and 1.8733 (50%) and from this range we expect further losses.
10th February 2005
The marginal new low confused slightly and we have adjusted the retracement levels to 1.8667 and 1.8715 and look for an end to Wave -iv- around this area to cause a decline in Wave -v- that should get us to 1.8409 at least and we suspect to 1.8330-48.
(c) FX-Strategy Inc 2005
Disclaimer: Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."