Monday December 4, 2006 - 06:12:36 GMT
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Daily Analysis for GBPUSDGBPUSD
Resistance: 1.9813 ... 1.9846 ... 1.9868 ... 1.9898
Support: 1.9745 ... 1.9720 ... 1.9697 ... 1.9677
While 1.9846-68 caps we look for losses to 1.9740-50 and only breach suggests to 1.9695-00
Gains continued more aggressively than expected with a peak seen at 1.9846. However, we do feel this should hold â€“ and at the most 1.9868. Thus a stronger bullish argument will require a break back above 1.9813 to retest the 1.9846-68 area. Breach is then required to extend the upside towards 1.9907-16 at least. Next resistance is at 1.9939 and stronger at 1.9995.
Strength has continued to 1.9846 and should eventually lead to a test of the 2.0045 & 2.01 highs. In the meantime we should see price remain above 1.9572 and at most 1.9487-1.9540. (December 4th)
The strength here has really been far stronger than anticipated but we feel Fridayâ€™s 1.9846 high stands a good chance of causing a decent pullback. However, we note supports along the way at 1.9740-50 which is likely to cause a pullback. Only below extends the decline to 1.9695-00. Next support is at 1.9677 and then 1.9633.
We see potential for a correction to 1.9572 at least and at most to the 1.9487-1.9540 area. Thus to generate a stronger reversal we need breach of this lower support. (December 4th)
ELLIOTT WAVE COMMENTS
We note the 1.9846-68 area is implied as a 161.8% projection in Wave c and a 223.6% projection in Wave iii. Thus we look for a pullback from this area and once confirmed can identify possible supports which currently look to be in the 1.9487-1.9540 area.
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