The pound may fall toward $1.5783 after breaching key levels of support this week, Commerzbank AG said, citing trading patterns. Sterling is likely to extend its 2.4 percent decline in the past month after it dropped below its 200-day moving average and its Aug. 11 low, Karen Jones, head of fixed-income, commodity and currency technical analysis in London at the German lender, wrote in an e-mailed report today. “Pound-dollar remains under pressure following its break below support at $1.6126/$1.6100,” Jones wrote. “The sell-off remains on course for $1.5783/86,” she said, referring to the low reached on July 12 and the 38.2 percent Fibonacci retracement of its advance from May 2010 to April 2011. The pound depreciated 0.4 percent to $1.5935 as of 8:51 a.m. in London. It dropped to $1.5919 yesterday, the lowest level since July 13. Support refers to an area where buy orders may be clustered, and resistance is where there may be orders to sell. Fibonacci analysis is based on the theory that prices rise or fall by certain percentages after reaching a high or low. In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index. To contact the reporter on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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