Sunday April 17, 2005 - 08:54:51 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 18th April 2005 Price:
Resistance: 1.8946 ... 1.8974 ... 1.9008 ... 1.9035
Support....: 1.8892 ... 1.8875 ... 1.8855 ... 1.8825
While 1.8875-92 supports we look for gains to extend towards 1.9008-35
Direct reversal higher on Friday keeps the bias on the upside and while we feel that early trading could see a pullback to the 1.8875-92 area, this should support and allow further gains to extend above 1.8946 & 1.8974 to reach 1.9008 minimum and probably the 1.9035 area. Care here since this may cap. Only breach would trigger gains to the original target at 1.9060 and possibly 1.9096.
Reversal back higher means we need be patient once again for a selling opportunity. While we do see early trading seeing drift lower towards 1.8875-92 we feel this should support. Thus, only a clean break of 1.8875 would cause losses down to 1.8825 at least and breach here is required to extend losses back to the 1.8760 area. More likely we feel that the 1.9008-35 area should provide a selling opportunity but stops should be left above 1.9060 and probably above 1.9096.
Elliott Wave Comments:
18th April 2005
We have clearly had to re-evaluate the wave structure and while this is less than clear in the initial rally from 1.8590 to 1.8974 we have tentatively placed a labeling representing a double zig-zag from the 1.8590 low. This implies that the 1.8669 low was a Wave x and thus 1.8973 was Wave a with a Wave b correction to 1.8759. This should imply a move back higher to 1.9008-35 at least (representing an internal target in the rally from 1.8759) with risk to the 1.9060 level being Wave c equal to Wave a. We also note a potential Fibonacci target at 1.9096 which would imply a possible Wave -a- high in a larger triangular consolidation structure.
(c) FX-Strategy Inc 2005
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