Wednesday March 23, 2005 - 01:13:32 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 23rd March 2005 Price:
Resistance: 1.8862 ... 1.8882 ... 1.8905 ... 1.8945
Support....: 1.8821 ... 1.8797 ... 1.8760 ... 1.8723
We continue to look for losses to reach the 1.8760-78 area at least and possibly 1.8695-1.8723
The pullback was extremely shallow yesterday and ended at 1.9013 from where we have seen a sharp drop lower. Today doesn't seem to have much upside in it and thus only on a break back above 1.8862-82 would cause minor follow-through to 1.8905 and possibly as deep as 1.8931-45 which we would expect to cap. Further resistance is at yesterday's peaks around 1.9009-13.
Losses resumed much earlier than expected and are in line with our bearish stance. We feel that the 1.8862-82 area stands a good chance of capping price but any short positions should have a stop placed above 1.8905. From this pullback we are looking for losses to extend down towards 1.8760 minimum and we suspect a move down to the 1.9695-1.8723 area is more likely. However, we would look for this to cause a pullback.
Elliott Wave Comments:
22nd March 2005
Losses have continued below 1.9077 and to 1.8943 and we have tentively labeled this as the end of Wave (iii). We should also allow for this to move to 1.8911-27. However, overall this will imply that the next day or two should see a retracement to the 1.9055-75 area but watch also resistance at 1.9024. From the coming peak we then look for losses to develop in Wave (v) and at the moment we see potential targets at 1.8817 and also between 1.8765-80 but will review as we see where Wave (iv) stalls.
23rd March 2005
Wave (iv) appeared to have found a peak at 1.9013 and should imply Wave (v) moving to 1.8778 at least and possibly down to 1.8690-1.8723. This should then cause a larger pullback. We should also note the alternate wave count that would label the 1.8943 low as Wave (a) and thus we shall see a larger Wave (c) lower now.
(c) FX-Strategy Inc 2005
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