Wee of August 26, 2008

12:00 GMT EURUSD current intraday fall from last Friday’s 1.4909 high has reached 1.4570 low as of this update, as a 1 hour open and close above 1.4699 will complete this fall at 1.4570. Our target of 1.4358 remains, as mentioned in our prior updates. (Please read our EURUSD Outlook dated August 21, 2008-8:00 GMT).

As for GBPUSD, the fall from last Thursday’s 1.8793 high remains active as only a 1 hour open and close above 1.8507 will complete this fall at today’s 1.8328 low, a few pips shy of our previously mentioned 1.8303 target.

9:00 GMT The GBPUSD remains in a very strong impulsive move to the downside with potential for much lower prices in the months ahead, as GBPUSD now targets 1.8303, followed by 1.8076. The events discussed in our August 18 GBPUSD have unfolded exactly as forecast with the recent fall in GBPUSD supported by significant volume and momentum.

Short term

The intra-day move lower from last Thursday’s 1.8794 high should continue to move lower with 1.8303 as the next objective, while to the upside, prices should remain below 1.8509. As to the short term fall from the August 11, 2008 high at 1.9256, prices were unable to open and close above 1.8795, as this wave remains active with 1.8303 as the next objective. Only a daily open and close above 1.8686 will complete the fall from 1.9256 with prices then likely to trade within a 1.8686-1.8904 consolidation zone before another attempt to the downside.

Medium-term

As to the medium term trend from the March 9, 2008 high at 2.0397 remains active as ONLY a daily open and close above 1.9030 will complete this fall with prices then likley to consolidate within a 1.9030-1.9459 consolidation zone before attempting another move to the downside.

Broad outlook

The broad outlook continues to support a dramatic move lower in GBPUSD as was our August 18 forecast, with 1.8076 and the November 2005 low at 1.7048 as the next objectives in the weeks ahead. Additionally, a monthly open and close below 1.8303 will suggest further extension to the downside with prices then entering into a broad 1.6539-1.8303 condsolidation zone, as a sustained break of this zone favors further extension in the ditection of the break. To the downside, a sustained break of 1.6539 will see prices move towards the 2001 lows at 1.3682.

We will have more updates later.

Forex Signals Plus, RW