Falling within range; FOMC today | 30 October 2013

Cable continues to fall within its consolidation range. The current move down will probably continue until it reaches support at 1.5940, followed by 1.5870. The trend is weakening with a possible double-top pattern at the highs. A break below 1.6020 would help signal the next move down as it would mark a triple-bottom continuation. If we reach the 1.5870 lows then we will be resting on an important neckline and a break below that would signal a major reversal, however, until then the dominant trend remains bullish and once this sideways move has finished, the pair is expected to resume its advance, targeting the 1.62525 highs again. Today is FOMC with much volatility expected in dollar pairs.