Tuesday September 28, 2004 - 00:57:56 GMT
Share This Story
FX-Strategy - www.fx-strategy.com
Forex: Daily Forecast for the British Pound vs U.S. Dollar 28th September 2004 Price: 1.8110
Resistance: 1.8125 ... 1.8140 ... 1.8165 ... 1.8190
Support....: 1.8070 ... 1.8050 ... 1.8025 ... 1.8003
A rally to 1.8125-45 followed by a pullback at the very least
We are encouraged with yesterday's strength but feel that the 1.8125-45 area should provide a cap for today. Thus only above 1.8150 would allow gains to extend higher towards 1.8165 and probably 1.8190 which also has strength to cap. Further resistance is found at 1.8235-65.
While we prefer an initial bullish stance we also advise caution as we approach the 1.8125-45 target area. We suspect this will hold to provoke a pullback to the 1.8070-90 area at least and should this are break then a move down to 1.8000-05 is possible but should allow a correction at the very least.
Elliott Wave Comments:
20th September 2004
Since the last update we have seen quite a volatile move with the decline in Wave -b- dipping slightly more than anticipated to 1.7738 but with the subsquent rally also quite deep to 1.7970. This leaves us with two scenarios:
(1) That Wave -c- will complete a Zig-zag that should see completion between 1.8065-1.8110, and:
(2) That we see a triangle develop with a Wave -c- peak already seen at 1.7970 and this should be followed by a decline in Wave -d- down to the 1.7795-1.7805 area.
We shall watch this and update as price develops during the week.
27th September 2004
The first scenario described last week proved correct with price reaching the mid point of the 1.8065-1.8110 area suggested. The rally on Friday from 1.7945 to 1.8093 may well have satisified this target but only a dip below the 1.7980-00 Fibonacci retracement areas would prevent a second attempt higher to the favored resistance area around 1.8125-45 which represents around a 76.4% -85.6% projection in Wave -v- that also matches a 138.2% projection of Wave -c-.
Any earlier dip below 1.7980-00 would test the Wave -iv- low at 1.7945 and break there would confirm further losses.
(c) FX-Strategy Inc 2004
Disclaimer: Pro Commentary, FX-Strategy, FX-Strategy Pro Charts, and any related products or services, are analytical tools only and are not intended to replace individual research. The information provided here should not be relied on as a substitute for extensive independent research before making your trading/investment decisions. FX-Strategy is merely providing this service for your general information. No representation is being made that any software or training will guarantee profits or not result in losses from trading. The views are not necessarily those of FX-Strategy, its owners, officers, agents or employees. In addition any projections or views of the market provided may not prove to be accurate. FX-Strategy will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this service. Be sure to closely read and understand the risks of foreign currency trading as described on the FX-Strategy website.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."