Sunday February 20, 2005 - 22:53:17 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 21st-22nd February 2005
Resistance: 1.8953 ... 1.8974 ... 1.9026 ... 1.9058
Support....: 1.8915 ... 1.8878 ... 1.8840 ... 1.8822
Bias: Slightly mixed - waiting for breaks
Bullish: The recovery higher continued on Friday and came within 3 points of the 1.8974 high. This does appear to support a more bullish stance but we are a little reluctant at this point to get too bullish. Further gains will require 1.8890-8915 to hold and a move back above 1.8971-74 should trigger gains to 1.9026 at least which should be observed closely. There is risk of the gains extending to 1.9037-58 but we feel there is a risk of a top forming. Thus only above 1.9058 would extend gains up to 1.9100 and probably 1.9150.
Bearish: Friday saw the 1.8974 high very close to breaking and as yet we have not seen much of a convincing pullback. Until the 1.8890-1.8915 are is broken we cannot rule out further gains. Thus only on a break below this area would we feel that that the downside becomes the stronger risk and thus would look for an initial move down to 1.8835-40 at least and while this should cause a pullback we would then expect further losses to 1.8790 and probably back to the 1.8741-51 area.
Elliott Wave Comments:
21st February 2005
The recovery from the 1.8751 low has been frustrating but we note the bearish daily & weekly cycles along with the Fibonacci resistance at 1.9027.Thus, even if we see a spike higher to 1.9026 (which is implied within the rally from 1.8751) we feel that this should complete the recovery from 1.8505 and therefore of Wave [b].
(c) FX-Strategy Inc 2005
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