Tuesday May 3, 2005 - 00:37:35 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 3rd May 2005 Price:
Resistance: 1.8960 ... 1.8987 ... 1.9012 ... 1.9040
Support....: 1.8903 ... 1.8880 ... 1.8850 ... 1.8829
We should allow for losses to 1.8903-21 but then expect recovery
Losses have been stronger than expected but fit nicely within the overall medium term view. Today we see risk of a move to 1.8903 but will expect recovery from there. We shall need a move back above 1.8960 which would then allow a move back to 1.9000-10 and we feel the 1.9040-50 area is quite possible. Further resistance is found at 1.9095-1.9105.
Losses moved down to just below the 1.8936 level and further losses are being seen as we write. However, we see support at aroiund 1.8903 and look for this to hold. Thus a stronger bearish stance will require a break below 1.8900 which would then test 1.8880 and probably as far as 1.8829. Further support is then found at 1.8760.
Elliott Wave Comments:
2nd May 2005
The 1.9173 level has not been breached and this appears to suggest that Friday's high at 1.9159 can be labled as Wave x and thus we look for a further ABC pattern lower. Overall this should keep the pattern intact and suggest a Wave ^d low between 1.8760 (which marks the final Wave b in the rally to 1.9215) and also at the 66.67% projection at 1.8726.
3rd May 2005
The progress lower is being seen and we feel that we are close to - or have seen - the next Wave a low. Thus we are looking for a pullback that is likely to remain below 1.9040-60 (max 1.9100) and then we'd look for the final decline to the 1.8760 and possibly 1.8726 level to complete Wave ^d.
(c) FX-Strategy Inc 2005
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