By Stanley White Oct. 9 (Bloomberg) -- The pound may fall to $1.7050 in coming days, according to Pak Lai Ng, a technical analyst at Forecast Singapore Pte, citing technical charts Sterling is likely to keep declining as its weekly relative strength index show its 3 percent loss this month isn't overdone, Ng said. The currency is also poised to weaken as stochastic and moving average convergence/divergence charts are showing sell signals, he said. So-called support at $1.7050 is near the pound's low of Nov. 28, 2005, Ng said. ``The pound looks weak,'' Singapore-based Ng said. ``This move has further to go and it could come very quickly.'' The pound dropped to $1.7286 at 12:21 p.m. in Tokyo from $1.7305 late yesterday in New York. It reached $1.7171, the lowest since Dec. 30, 2005. Should the pound break through first support at $1.7050 it may decline to second support at $1.7000, Ng said. Support is a level where buy orders may be clustered. The pound's 14-day relative strength index, a comparison of the magnitude of gains and losses, was 30.94 on a weekly chart. A reading between 30 and 70 signals that a currency's moves are not excessive. A stochastic graph measures the price of a security compared with its highs and lows. MACD charts can indicate whether a price shift is a change in trend or a short-term deviation by comparing moving averages based on 9-, 12- and 26- day periods. In technical analysis, investors and analysts study charts of trading patterns and prices to forecast price changes in a security, commodity, currency or index. To contact the reporter on this story: Stanley White in Tokyo at swhite28@bloomberg.net.

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