Wednesday August 10, 2005 - 01:00:09 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 10th August 2005 Price:
Resistance: 1.7898 ... 1.7915 ... 1.7940 ... 1.7954
Support....: 1.7832 ... 1.7817 ... 1.7776 ... 1.7739
We feel there is a good chance that yesterday's peak will cap and that losses are due
No break of 1.7915 although the pullback has not yet confirmed a strategic peak. For there to be any chance of continued gains we shall need to see the 1.7817-32 area support and for a break back above 1.7878-98 area which would then pressure the 1.7915 high and probable breach for 1.7940-54 at least. Care at this point as this could cap. next resistance is not until the 1.8000 area.
Minor breach of the 1.7900 area but failure to move above 1.7915 encourages our preferred bearish view. However, this is not yet confirmed and we should ideally see the 1.7878-98 area cap and for losses to move back below 1.7817-30 which would trigger follow-through to 1.7776 and probably 1.7739. Further good support is found around 1.7700-15.
Elliott Wave Comments:
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.
10th August 2005
Although a minor new high at 1.7915 was seen, this occurred within the mild uptrend channel (see the 60 minute chart in the daily section) but to confirm losses we really need to see breach of this channel around yesterday's low. Once seen we can confirm the 1.7915 as a key peak and expect losses to the rally from 1.7270. This should reach the 1.7700-15 area at a minimum and possibly the 1.7593 area being a 50% retracement from 1.7270.
(c) FX-Strategy Inc 2005
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