Aug. 2 (Bloomberg) -- The pound may reach $1.5970, the highest in almost six months, should it breach a key technical level, according to analysts at Commerzbank AG. Sterling, which broke above its 200-day moving average last week, “meets resistance at $1.5836, the top of its short-term channel,” Karen Jones, head of fixed-income, commodity and currency technical analysis in London, said today. A sustained break above that level “targets $1.5970, the 61.8 percent Fibonacci retracement of the decline from $1.7044 in August 2009 to the May 2010 low at $1.4225,” Jones said in a telephone interview. The pound gained 0.7 percent to $1.5794 as of 10 a.m. in London, having advanced to $1.5808 earlier, the highest level since Feb. 17. It last surpassed $1.5970 on Feb. 3. In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. Resistance is a level where sell orders may be clustered, and so-called support is where buy orders may be grouped. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low.

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