Friday July 29, 2005 - 01:09:33 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 29th July 2005 Price:
Resistance: 1.7590 ... 1.7616 ... 1.7635 ... 1.7676
Support....: 1.7534 ... 1.7495 ... 1.7464 ... 1.7449
While 1.7495 (max 1.7464) supports we look for gains towards 1.7676
Yesterday's gains were as bullish as we could have expected and we feel there is more to come. Indeed, we look for a move down to 1.7495 during the first half of the day which we consider a good buying area with stops to be placed below 1.7464. From this low we shall expect a rally to move back above 1.7590-1.7616 with an ultimate target at 1.7676 which should hold for a larger pullback.
The strong rally yesterday should limit any pullback today. However, we do look for a move to 1.7495 but feel this should hold. However, a stronger bearish stance is only valid on a break below 1.7464 and if seen would then trigger follow-through to 1.7449 and possibly back to the 1.7403 low. Any later test of 1.7676 should provide a good selling opportunity.
Elliott Wave Comments:
28th July 2005
With the 1.7330 Wave b low holding intact yesterday we feel more comfortable with the bullish view but we do require a break above the 1.7472 Wave a high and feel that this should spurn a move to the 1.7528 (where Wave c = 138.2% of Wave a) and probably the 1.7562 level (where Wave c = 161.8% of Wave a). From here we need observe furtuher development.
29th July 2005
We feel the move to 1.2596 completes Wave iii of Wave c and given the long slow decline in Wave ii we suspect a brief correction in Wave iv. A 38.2% retracement lies at 1.7495 and we suspect this will contain the losses (maximum at the 50% retracement at 1.7464). Assuming a Wave iv low at 1.7495 we shall expect Wave v to extend to an approximate 66.67% projection close to 1.7676 where Wave c will be equal to Wave a.
(c) FX-Strategy Inc 2005
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