Tuesday August 9, 2005 - 00:58:24 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 9th August 2005 Price:
Resistance: 1.7870 ... 1.7900 ... 1.7915 ... 1.7940
Support....: 1.7827 ... 1.7807 ... 1.7784 ... 1.7757
With the 1.7890-95 target met we cautiously look for the downside to be more vulnerable
Our target at 1.7890-95 has been met and we are reluctant to get bullish unless the 1.7900-15 is broken. Even if this occurs we see resistance at 1.7940-54 which needs to be broken before we look for a stronger rally above 1.8000 and to 1.8054 at least.
With our target at 1.7890-95 met we prefer a bearish stance. However, this may take a little while longer before we see a more significant break lower. This morning we have seen a move to 1.7836. There is further support around the 1.7825-30 area and this could cause a pullback, even to retest the 1.7900 high. Below 1.7825 is required to keep the downside intact - next support around 1.7784-1.7807 and then 1.7757.
Elliott Wave Comments:
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.
9th August 2005
We have met the 1.7890-95 target for Wave v and this completes a Wave c that is 161.8% of Wave a. Thus we look for Wave x to begin development. This should have potential to 1.7585 (being 50% of the rally from 1.7270 to 1.7900) but we need to see a little more development from yesterday's high to provide further potential support levels.
(c) FX-Strategy Inc 2005
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