Thursday November 1, 2007 - 04:13:08 GMT
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Daily Analysis for GBPUSD
||Mixed - waiting for breaks|
||Gains have proceeded much faster than expected and reached to just below the 2.0828 resistance. We have a bearish divergence in place and this does warn of a possible reversal lower, which given the proximity of the larger 2.0957 target, I would prefer to see. Thus only while the 2.0740-45 support holds to cause a retest of 2.0822 would I look for an additional leg higher to the 2.0861 resistance but feel this should cap. Next resistance is then found at 2.0920 and 2.0957. |
||The break higher looks certain to reach the 2.0728 target but is also more likely to break above for 2.0782 and 2.0881 en route an eventual target at 2.0957. (31st October)|
||Strong gains seen but also a bearish divergence. It is too early to confirm but does warn of a possible larger reversal. While 2.0822 remains the high and we see a dip below this morningâ€™s 2.0776 low we should then see a test of the key 2.0440-45 support. This needs to break to keep the pressure lower towards 2.0704 and probably all the way down to 2.0641 and eventually 2.0540. |
||I think weâ€™re approaching a key high, but not quite yet. There may well be room for a slightly deeper correction that could possibly see 2.0540 and as much as 2.0450 but only below 2.0389 reverses totally. (1st November)|
ELLIOTT WAVE COMMENTS
I still retain the 66.7% daily Wave (v) target at 2.0957 though we are approaching much faster than I had anticipated.
I made a small miscalculation yesterday with the projection in Wave â€“iii-. A 166.7% projection was seen at 2.0822 while a 176.4% projection is at 2.0861. Thus we should get a pullback from this broad area. Indeed, this should be quite deep as we can expect a full 50% pullback in Wave â€“iv- that currently would imply a target at 2.0453. A 41.4% retracement is at 2.0540.
Any more direct move higher would mean we should watch the 2.0957 area.
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