Wednesday November 22, 2006 - 04:28:30 GMT
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Daily Analysis for GBPUSDPrice:
Resistance: 1.9030 ... 1.9050 ... 1.9097 ... 1.9125
Support: 1.8990 ... 1.8960 ... 1.8925 ... 1.8901
We look for a peak in the 1.9030-50 area and for a correction lower
The wave structure is still unclear but we note resistance at 1.9030 and also at the 1.9050 pivot area identified yesterday. Thus a stronger bullish stance will need a clean break of 1.9050-60 and only then would we look for follow-through to the next resistance at 1.9097 and possibly 1.9120-30.
The recovery from 1.8834 does appear to imply that further gains are expected although the cyclic situation is unclear. Back above 1.9130-78 would trigger stronger gains possibly to 1.9548. (November 20th)
Gains have continued but we feel that these should be limited to the 1.9030-50 area. Watch this resistance are first and any reversal from here should cause a move back below the 1.8990-00 trend support and when this breaks look for a slightly deeper pullback to 1.8900-20.
With reversal from just below the 1.8850 support the downside doesnâ€™t look good. The only concern we have are the apparent bearish cycles and therefore loss of 1.8834 extends to 1.8754-89 at least. (November 20th)
ELLIOTT WAVE COMMENTS
We canâ€™t say the rally has been particularly clear although in normal circumstance weâ€™d expect to see a move back towards the 1.9187 high. To keep this move intact we need the 61.8% retracement at 1.8895 to remain intact and we also note support at the 1.8920-30 pivot area.
We still canâ€™t see a strong wave structure but note a small 76.4% extension at 1.9030 and the pivotal area at 1.9050 and this should cap to complete Wave a higher which should be followed by Wave b back to the 1.8900-20 pivot area.
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