Thursday September 9, 2004 - 00:04:37 GMT
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Forex: Daily Forecast for the British Pound vs U.S. Dollar 9th September 2004 Price: 1.7870
Resistance: 1.7905 ... 1.7920 ... 1.7950 ... 1.7970
Support....: 1.7860 ... 1.7825 ... 1.7805 ... 1.7780
Initially looking for a dip to 1.7800 -30 before higher again
The Pound rallied strongly and suggests we have seen the low for now. The first move today should see price dipping towards the 1.7800-30 support but we feel this will provide a base for further gains. Once price has broken above 1.7906 we look for follow-through towards 1.7950 and 1.8025 en route 1.8065.
We look for initial trading to take the Pound lower and should dip to the 1.7800-30 area. However, we anticipate this will support and thus only a clean break below 1.7800 would call for further losses to 1.7750-80 and possibly as deep as the 1.7705-20 support.
Elliott Wave Comments:
6th September 2004
The wave count has been slightly confused and we are still cautious over the exact count. However, we have slightly adjusted the count to label the 1.8065 high as Wave -iv- and thus we are looking for the decline in Wave -v-. Fibonacci projections for this lie around 1.7705 and also at 1.7620 although these do not seem to match up with a Wave C projection. (Wave equality of Wave A was at 1.7770 and the next common relationship would imply losses down to 1.7515 which we feel is a little aggressive at this stage). Thus we watch the 1.7620-1.7700 area which we feel should help identify the correct wave count.
9th September 2004
The drop to 1.7706 appears to have completed the initial A-B-C pattern and thus we look for a period of recovery. Initial target must be at the prior Wave -iv- at 1.8065.
(c) FX-Strategy Inc 2004
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