Friday September 30, 2005 - 00:43:37 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the British Pound vs U.S. Dollar 30th September 2005 Price:
Resistance: 1.7626 ... 1.7645 ... 1.7672 ... 1.7717
Support....: 1.7563 ... 1.7532 ... 1.7512 ... 1.7499
We are bearish to 1.7512-32 initially and later to 1.7450-60
The failure to see much of a recovery does suggest we should hold back from a bullish stance for most of the day. Only an earlier break back above 1.7645 and then 1.7672 would suggest follow-through to the 1.7717-30 area identified yesterday but should hold. Breach there is required to generate a stronger move higher to 1.7757 and 1.7796. We feel that a move down to 1.7450-60 is likely but should provide an excellent buying opportunity.
No break above 1.7717 and with the loss to 1.7590 we feel that the main risk is lower today. We should see no higher than 1.7645 and quite possibly 1.7600-26 should cap with losses expected to 1.7532 minimum and possibly 1.7512 where a small pullback is anticipated. While this remains below 1.7570-90 the next leg lower to 1.7450-60 should be seen but should hold to spark a larger recovery.
Elliott Wave Comments:
29th September 2005
We can't say that yesterday's developments really clarified the structure but we could count this as an expanded flat from 1.7637 with yesterday's low at 1.7603 being the extended Wave b. Thus a return to 1.7717-30 cannot be ruled out but while this level caps we need accept risk of losses down to the 1.7520-40 area at least where Wave -iii- is a 238.2% projection of Wave -i- and Wave -c- is 176.4% of Wave -a-.
30th September 2005
The structure since the 1.7637 low appears more to be in the form of an expanded flat triangle with completion of Wave b of Wave v at 1.7672. This should imply a move down to the 261.8% Wave -iii- target at 1.7458 with Wave -c- reaching 138.2% of Wave -a- at 1.7452. It is also in this area that Wave c of Wave v finds a 138.2% projection and thus we feel a low will be seen in Wave -iii- to allow a correction in Wave -iv-.
(c) FX-Strategy Inc 2005
Disclaimer: Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."