Tuesday May 25, 2004 - 01:33:18 GMT
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FX-Strategy - www.fx-strategy.com
Daily Forecast for GBPUSD 25th May 2004Price: 1.7925
Resistance: 1.7930 ... 1.7945 ... 1.7975 ... 1.8015
Support....: 1.7880 ... 1.7855 ... 1.7820 ... 1.7760
Mixed - waiting for breaks
We saw a slight breach of our 1.7840 support but from 1.7820 a firm recovery that does appear to support the view for a move to 1.7975 (max 1.8015) which we feel will cause a further pullback. Thus only above 1.8015 would provoke a direct test of the 1.8055-65 resistance. At the moment we feel this will hold but any break would cause further strong gains towards 1.8165-95.
While 1.7820 held and has generated further strength, this has not yet broken above the key 1.7975 resistance. Thus while resistance at 1.7975 holds we feel there will be room for a pullback at the very least that needs to move below 1.7880-85 to assist lower. Next support is at 1.7820 and then 1.7760.
Elliott Wave Comment:
The development in price over the past few days suggests that we are seeing an expanded flat correction from the 1.7530 low within which the irregular Wave b occurred at 1.7450 on Friday. This would imply a move back to the 1.7800-20 area to complete Wave c (and therefore Wave [ii]) from where we anticipate the Wave [iii] beginning and which has a minimum target at 1.7275 but a more likely target around 1.7075.
(c) FX-Strategy Inc 2004
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