Wednesday August 25, 2004 - 01:56:05 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 25th August 2004Price 1.7925
Resistance: 1.7930 ... 1.7950 ... 1.7990 ... 1.8025
Support....: 1.7880 ... 1.7865 ... 1.7830 ... 1.7795
Recovering to 1.7985-1.8025 today
With the clean break of 1.8000 we must now take a bearish medium to long term view. However, we clearly need to navigate our way around this decline and having reviewed the wave structure this morning we tend to feel that the 1.7880 area should remain intact today. We look for a recovery above 1.7930 and then pivot resistance at 1.7950 which should allow the pullback to continue to 1.7985-95 at least with potential to 1.8025. However, we feel this area will provide a peak for the next move lower.
With losses seen to 1.7880 the longer term looks bearish. However, for today we tend to feel a pullback to the recent sharp decline is likely. Thus we feel the 1.7885 area should provide an excellent selling opportunity with stops above 1.8030. Alternatively any drop below 1.7830 would threaten direct follow-through lower towards 1.7795 at least and we suspect to 1.7770 where a pullback is possible.
Elliott Wave Comments:
25th August 2004
Yesterday's drop below 1.8000 negates the expanded flat argument and suggests continuation of the losses for several weeks. We have relabeled the wave structure with the 1.8463 high being Wave B followed by a Wave (i) at 1.8130 and a full Wave (ii) recovery at 1.8463 once again. We feel that yesterday's low completes Wave -iii- of Wave [c] of Wave (iii). Wave (iv) therefore has potential targets between 1.7985-1.8025 and Wave (v) (and therefore Wave (iii)) targets around 1.7770 at leat and we suspect 1.7640.
(c) FX-Strategy Inc 2004
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