FXstreet.com (Barcelona) - The Sterling has been trading in a pronounced downward trend during the current week and from levels above 1.6700 last week, the pair is trading at 1.6200/20 area at the moment, which according to Alex Rudolph, technical analyst at Commerzbank, is a key support area.

If the pair confirms below 1.6219/02, next target will be 1.6134.13, says Rudolph: Now trading within its 1.6219/02 minor support zone, made up of the 50% and longer term 23.6% Fibonacci retracement levels.

Failure here will target 1.6134/13 (the Sept. 21 and Sep. 1 lows) on its way to the 1.60 region.

On the upside, initial resistance level lie at 1.6344/76, says Rudoph: Minor resistance comes in around the 1.6344/76 minor resistance line (the previous 2 month support line), 50% Fibonacci retracement and 55 day moving average. Above it are the 100 day moving average at 1.6422.