Thursday August 26, 2004 - 00:54:26 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 26th August 2004Price 109.95
Resistance: 110.20 ... 110.40 ... 110.60 ... 110.85
Support....: 109.70 ... 109.35 ... 109.10 ... 108.90
Bearish to below 108.90 with 108.50 and 108.10 as possible stalling points
With the favored rally seen to 110.50 we feel any bullish stance needs to be put on hold. Only back above 110.40 would cause a move back up to 110.85-00 though we give this low risk. A break of 111.00 wooould be bullish if seen and imply strong gains up to 112.07-46 at least.
Having seen a high at 110.50 we feel the upside correction is compelte and thus we look for continued losses that, on a break of 109.35, would confirm further losses. First support is at 108.90 and then 108.55 with the 108.10 area also providing a possible stalling point.
Elliott Wave Comments:
August 23rd 2004
Although having broken the ideal target at 109.05-10 slightly we are still in favor of the 108.90 low having formed a Wave c low and with intermediate daily cycles suggesting 3-5 days of recovery we anticpated the development of a Wave x ahead of further losses in a second ABC pattern lower. Logical resistance for the Wave x is at 110.25 being a 1.618 projection of the first rally from 108.90 to 109.75 and at 110.85-00 being the area of the Wave b peak.
August 26th 2004
We feel the 110.50 high yesterday completed a Triple Three correction in Wave x and this should allow a further ABC pattern to develop lower. At this point it is impossible to know where the first Wave (a) will end though we can point to two levels that seemed favored - these being at 108.55 and 108.10. We tend to prefer the higher area which should then prompt a Wave (b) and finally a drop to the 107.60 target in Wave (c) some time next week.
(c) FX-Strategy Inc 2004
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