Tuesday January 23, 2007 - 04:51:46 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Daily Analysis for GBPUSD
Resistance: 1.9786 ... 1.9811 ... 1.9839 ... 1.9875
Support: 1.9750 ... 1.9715 ... 1.9694 ... 1.9666
We require a quick break higher to retain upward momentum for 1.9832 at least
We are still a little mixed here with price struggling to return to the uptrend. With cycles turning lower we need take the move higher step by step. Thus the 1.9750 support should ideally hold and keep the upward momentum intact by breaking above 1.9786 which should allow follow-through to the 1.9832-46 area. Care here as this could cap. Only above 1.9846 extends to 1.9894 â€“ max 1.9938.
Price keeps moving higher and this should mean we retest 1.9835-46 at a minimum. If this breaks take the move in steps with 1.9900 the next resistance and above there 2.0000-20. (January 18th)
While price has edged higher it has hardly shown great momentum and we should be aware of the risk of a pullback at any time. Note resistance at 1.9832. A break below 1.9750 will assist lower and should allow a drift down into the 1.9694-1.9715 area which should cause a pullback. Below 1.9694 would imply further losses to 1.9617-34.
The structure still looks bullish and only back below 1.9580 would begin to place a more bearish stance on this for 1.9519 and 1.9457. (January 19th)
ELLIOTT WAVE COMMENTS
When going through the analysis we felt the upward structure was still more likely. Indeed we still need to acknowledge this. However, we note that daily cycles are really threatening a decline and therefore we keep open the possibility of a flat correction from 1.9846 which would imply a retest there but then reversal lower for 1.9260 again. Thus remain flexible and react to price action with the two wave counts in mind.
We retain the two possible wave counts but with cycles turning lower and failure to see sufficient gains the risk is turning to see a cap at 1.9832-46 and from there larger losses.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."