Wednesday August 31, 2005 - 00:55:10 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 31st August 2005 Price:
Resistance: 1.7875 ... 1.7906 ... 1.7928 ... 1.7951
Support....: 1.7835 ... 1.7817 ... 1.7790 ... 1.7756
While 1.7906-28 caps (max 1.7951) we look for losses to between 1.7723-56
Losses seen as expected and we feel that even though there is already a bullish divergence that we should see losses continue today to the 1.7723-56 area. Thus we feel we need wait for a buying opportunity and consider the 1.7723-56 area as a good area but stops will need to be placed below 1.7700. We shall expect this pullback to reach back to 1.7886 at least and possibly 1.7926. Only an earlier break back above 1.7951 would cause a deeper pullback higher to 1.7989 at least and possibly 1.8030.
Losses were seen to the 1.7820 pivot area and we feel there can be further losses later. However, we look for a corerction back to the 1.7906 level at least and probably 1.7928. (Max 1.7951) Thus we feel the 1.7906-28 area is a good selling area for losses to reach 1.7756 at least and possibly 1.7723. The target for this part of the decline is a little unclear but only below 1.7701 would see the decline extend towards 1.7633.
Elliott Wave Comments:
31st August 2005
Losses have dipped quickly and have reached the 1.7817-20 pivot support. However, we feel this is merely Wave iii of Wave -a- lower and should see a move down to the 1.7723-56 area to complete Wave -a- of Wave -iii- and thus we will then look for a Wave -b- to develop but we shall look for an eventual move to the 1.7633 target where Wave -iii- is equal to 161.8% of Wave -i-.
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