Friday August 13, 2004 - 01:06:54 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 13th AugustPrice 1.8220
Resistance: 1.8260 ... 1.8280 ... 1.8300 ... 1.8335
Support....: 1.8195 ... 1.8150 ... 1.8120 ... 1.8080
While holding below 1.8260-00 we are bearish to the 1.8080 low
With the losses seen yesterday we feel a bullish stance would be inappropriate today. The maximum upside should be in the 1.8260-1.8300 area although we feel the lower end of the range is likely to hold. Thus only above 1.8300 would cause a stronger pullback that should move higher to yesterday's high at 1.8360 and probably all the way to 1.8405. Further resistance is found at 1.8440.
The 1.8350-60 resistance held perfectly yesterday and provided a cap for the expected decline down to 1.8200. We continue to remain bearish with corrections that are likely to hold below 1.8260-80 which provides a good selling opportunity with stops above 1.8300. Once we have seen price move below the 1.8195 level we will expect a further decline down to 1.8080 with supports on the way at 1.8150 and 1.8120.
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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