Sunday August 7, 2005 - 06:06:18 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 8th August 2005 Price:
Resistance: 1.7834 ... 1.7865 ... 1.7895 ... 1.7915
Support....: 1.7765 ... 1.7735 ... 1.7710 ... 1.7670
While 1.7710-35 supports we look for the rally to reach 1.7890-95
Although we saw a pullback on Friday this did not break down below 1.7705 and thus keeps the underlying bullish view intact. This should now mean that the 1.7710-35 area should continue to support and lead to gains up above 1.7830-37 and through to the 1.7890-95 area. However we will expect this to cause a stronger pullback lower. Further resistance lies at 1.7915 and then 1.7940-54.
Still no break below the 1.7705-10 area and this remains the key to any downside break. Thus only a breach of this area will cause an earlier than expected pullback with next support at 1.7670 and 1.7647. This may well hold on first attempt. Further support lies at 1.7610 and then 1.7550.
Elliott Wave Comments:
4th August 2005
We kicked oursleves for not allowing more "wiggle" room below the 1.7662 level yesterday. However the rally from there has moved to 1.7830 and therefore suggests that we should see a move as high as 1.7890. Thus we label 1.7647 as Wave iv and the high at 1.7830 as Wave a of Wave v. We see risk for Wave b to move down to the 1.7708-39 area but then for Wave c to move to the 1.7890 target. This is where Wave c is equal to 161.8% of Wave a and where Wave v is equal to a 61.8% projection. That should complete a full ABC pattern from where we look for a Wave x to develop.
8th August 2005
The move back to 1.7713 appears to imply a flat correction in Wave b and thus we look for Wave c of Wave v to develop and continue to target the 1.7890-95 area. This should then complete Wave c from where we expect Wave x to develop.
(c) FX-Strategy Inc 2005
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