Entering support zone | 31 October 2013

Cable has continued falling towards the neckline of the double-top pattern. It is in a short-term down-trend, however it has reached substantial support and it may well bounce. On a longer time-frame it is broadly in a sideways consolidation which currently looks like a double-top pattern on the daily chart. The 100-day and 50-day MAs are providing support at 1.5990. If price breaks below this level, however, then it will probably move down towards the neckline at 1.5900 and perhaps the 200-day MA at 1.5875. This constitutes substantial support and may be difficult to break below, however, if it is successful then the target for the pattern is 1.5620.