| Resistance: | 1.5420 | 1.5450 | 1.5484 | 1.5534 |
| Support: | 1.5355 | 1.5315 | 1.5270 | 1.5250 |
.
Bias: While 1.5270-1.5315 supports I feel we may just see a move all the way to the 1.5656 target
Daily Bullish
Yesterday's gains were extremely solid and broke through all near term resistances to reach 1.5534. This does look good for the rally to extend furthe rtoday. However, we must watch out for the short term risk for the current correction to reach the 1.5270-1.5315 support. While this remains intact I feel the stronger chance is for the uptrend to resume back above 1.5420-50 and then the 1.5534 high to extend towards the ideal 1.5656 target. This should cap for a larger correction lower.
Medium Term Bullish
25th November: My bullish preference appears to have won through and this should soon see a break above the 1.5248 high and to 1.5322 en route 1.5392 and in time I feel we can reach 1.5656.
Daily Bearish
The downside does still seem to be good for a correction only. Indeed, I feel that early trading should be pushing the Pound lower and through the 1.5355 low seen so far and extend losses to 1.5315-32 at least. Take care here as this could hold. However, a fuller pullback is at 1.5270 and that should hold if seen. Thus, any stronger bearish stance will require a break below 1.5270 and if seen then we could see acceleration to 1.5185. Next support is then not seen until 1.5118 and 1.5046-60.
Medium Term Bearish
26th November: We can raise the reversal break to 1.5250 - only below here threatens a much deeper correction lower. Support then seen at 1.5046-60 and 1.4982.
Elliott Wave Comments
25th November:
The strong gains seen yesterday appear to confirm the 1.4557 low as a major trough hat should cause stronger gains over the next few months.
This would label the 1.5248 high as Wave i and the 1.4701 low as Wave ii. From this we can generate potential projections in Wave iii a minimum of 1.5656 being a 138.2% projection.
I feel that yesterday’s 1.5187 is merely Wave a in Wave iii and thus while a 50% retracement in Wave b at 1.4944 supports we should see price extend to the larger wave ii target. Also note support at the 38.2% retracement at 1.5001.
26th November:
I feel we have only seen Wave iii of Wave –c- of Wave –iii- and thus while the 41.4%-50% retracement in Wave iv at 1.5270—1.5315 supports we should see Wave v reach the 138.2% projection in Wave –iii- at 1.5656 which is also where Wave –c- will have projected by 138.2% also.
