Thursday November 10, 2005 - 00:53:02 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 10th November 2005 Price:
Resistance: 1.7469 ... 1.7481 ... 1.7514 ... 1.7540
Support....: 1.7413 ... 1.7386 ... 1.7361 ... 1.7325
Slightly mixed but while 1.7481-1.7514 caps we remain cautiously bearish for 1.7270 at least
Yesterday produced quite erractic sideways trading that does raise a small query over the downside. However, before getting too bullish we would want to see evidence of strength and this requires a break of 1.7481 and 1.7514 and only then would we look for follow through higher to 1.7559 at least and possibly as much as 1.7599-1.7614 but would look for this to cap.
Yesterday showed no real inclination in either direction. It does raise a small warning bell for the downside but until the 1.7481-1.7514 resistance breaks we still feel the downside probably has more argument. For this we shall need to see a break back below 1.7413-16 and then 1.7386, break of which would then trigger losses down to the 1.7325 low once again and probably down to test the annual low at 1.7270. Further support is at 1.7201.
Elliott Wave Comments:
9th November 2005
Yesterday's decline stalled just above the 161.8% projection at 1.7315 but we find the manner of the decline from 1.7792 has not been of a structure that would suggest this should have occurred. Thus we are forced to consider a more bearish stance but would prefer to have this confirmed. Thus we shall proceed with caution and do note the annual low at 1.7270 which could cause a reaction. Any breach here would extend losses to the next support areas at 1.7166-86. We shall update as price action develops.
10th November 2005
With an erratic sideways move yesterday we cannot say the structure here has become any clearer. We still consider the 1.7325 low to be a Wave iii low within a five wave move that provides 41.4% and 50% retracements at 1.7481 and 1.8514 respectively. These then need to hold to keep the downside intact with the next move lower expected to break below 1.7325 and to the year low at 1.7270 at least and where we should see some larger reaction higher.
(c) FX-Strategy Inc 2005
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