Friday October 14, 2005 - 00:47:12 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 14th October 2005 Price:
Resistance: 1.7572 ... 1.7599 ... 1.7612 ... 1.7637
Support....: 1.7508 ... 1.7481 ... 1.7460 ... 1.7442
While the 1.7570-99 area caps we look for a mostly lower day to 1.7442 at least but no further than 1.7390
Price saw a test of the 1.7570 pivot resistance but this has held so far. We do see a minor risk of a move to 1.7599 but we shall not get too bullish until this higher level breaks. If seen, look for follow-through to 1.7659 at least. next resistance is at 1.7696-1.7712. Any earlier decline to 1.7390-1.7425 would provide an excellent buying opportunity with stops to be placed below 1.7390.
The 1.7570 pivot resistance has held thus far and may well have provided the intermediate top here. Indeed, while 1.7570-99 caps we see a mostly downward day today. Breach of 1.7508 would confirm this. However, we do not anticipate a break below the 1.7390 low. Below 1.7508 sees support at 1.7460 and then 1.7442 which we expect to be tested at a minimum. Indeed, we will expect a reaction around this level. It is also quite normal in the Pound for quite deep pullbacks and we may just see minor breach of 1.7442 but no further than 1.7390.
Elliott Wave Comments:
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.
14th October 2005
Strength seen yesterday to the 1.7570 pivot resistance and we feel this has formed Wave i of Wave c higher. Thus, today should see downward pressure in Wave ii but we see this stalling between 1.7390-1.7442. This should lead to a moderately strong move in Wave iii initially next week and after Wave iv a final move up to the 1.7811 high with risk of follow-trhough to the 41.4% retracement in Wave -iv- to 1.7842.
(c) FX-Strategy Inc 2005
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