Thursday October 13, 2005 - 01:07:51 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 13th October 2005 Price:
Resistance: 1.7525 ... 1.7547 ... 1.7570 ... 1.7601
Support....: 1.7487 ... 1.7469 ... 1.7442 ... 1.7416
We now require 1.7442-69 to support to trigger recovery back above 1.7570 to 1.7631 and above
Losses did dip 8 points below our 1.7398 support but the recovery from there is encouraging. For the upside view we have held we now need to see 1.7442-69 support and allow gains to re-emerge above 1.7525 and then 1.7547-70 which should then trigger stronger gains towards 1.7601-31 and we suspect higher to 1.7704-41.
The recovery from a few points below our 1.7398 support looks more like the start of a larger recovery. Thus to revert back to the downside we need to see breach of 1.7442 which would cause a second test of the 1.7390 level. Break below there would extend losses down to the 1.7330-40 area at least. Breach signals 1.7270 and lower.
Elliott Wave Comments:
12th October 2005
We have seen the 1.7488 level break and this has caused a ratcheting move lower towards 1.7412. We see this and 1.7398 as critical support as a Wave b within an expanded flat Wave -iv-. Thus watch this level closely with any significant rebound implying a move back to 1.7811-42. Below 1.7398 would then trigger losses to targets in Wave -v- that should end around 1.7342-70.
13th October 2005
Although 1.7398 broke by 8 points we feel the recovery is encouraging for our view of an expanded flat correction. However, there is still a long way to go and we need 1.7442-69 to provide support for a further rally whcih we feel could reach the 1.7700-40 area in Wave iii higher. We would then look for a Wave iv with Wave v reaching back to 1.7811 at least and we suspect to the 41.4% retracement in Wave -iv- at 1.7842.
(c) FX-Strategy Inc 2005
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