Thursday August 12, 2004 - 00:33:07 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 12th AugustPrice 1.8315
Resistance: 1.8320 ... 1.8345 ... 1.8370 ... 1.8405
Support....: 1.8280 ... 1.8245 ... 1.8225 ... 1.8200
Bearish from the 1.8350-60 area to 1.8170-00 at least
Yesterday's choppy recovery encouraged our intermediate bearish view. We feel to day should therefore see price capped in the 1.8350-60 area and from there a decline is expected. Thus only a move above 1.8360 would provoke unexpected gains back to 1.8405 at least and which should prompt a pullback at the very least. Any break above 1.8405 would take price back to the 1.8440-63 resistance area.
The choppy pullback yesterday encourages us with a bearish view. We feel that early trading should allow a test of the 1.8350-60 area but this should hold and present a good selling opportunity for a break back below 1.8280 and down to 1.8170-00 at least. We suspect this may stall the decline for now. Further support is at 1.8080.
Elliott Wave Comments:
12th August 2004
The wave structure is beginning to look like developing in a flat correction from 1.8081. This would imply price should decline back down to the 1.8080 area for a second time but should then be followed by a recovery back to 1.8463 once again. We need to monitor this since the other possible strutures are a triangle or expanded flat. The triangle would call for a recovery from 1.8150-70.
(c) FX-Strategy Inc 2004
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