Monday, February 11, 2013

DAILY FORECAST FOR GBPUSD


BIAS: Look for further gains to 1.5898-16

Resistance: 1.5807 1.5844 1.5878 1.5898-16
Support: 1.5770-83 1.5740 1.5716 1.5696

MAIN ANALYSIS: The rally developed and pushed to the high-end of the stronger projection at 1.5832-44. I suspect we have either seen the full correction at 1.5783 but it would be best to allow for 1.5770-75. From there - or a direct break back above 1.5844 look for extension to the 1.5898-16 area (max 1.5941) before a correction lower. While I don't think it will get there, also note the 1.6000-10 resistance.

COUNTER ANALYSIS: Only a direct break back below 1.5760-65 would allow losses to extend back to the 1.5716 pivot support at least. Below are minor supports at 1.5696 and 1.5673 ahead of the 1.5630 low.

MEDIUM TERM ANALYSIS:
8th February:   That came from out of the blue… Are we seeing a recycling in an expanded flat Wave (ii) or may be even I misjudged the Wave (i) low that may have been seen at 1.5630…Either way it will imply the same bullish structure initially… but the 1.5671-83 area should ideally support. If so then we should see gains up to 1.5404-15 at least or the next higher projection at 1.5832-44 that could take price back above the 1.5878 high and noting the 1.5909-44 area at least...

It will now take a break back below 1.5670 to retest the 1.5630 low to 1.5585-1.5618 initially but risk deeper losses later.

Good trading
Ian Copsey

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