Sterling has come under fresh selling pressure over the past 48 hours, with GBP/USD testing support near 1.60 and it is likely to weaken further as unease over the banking sector increases. Although Sterling will still be cushioned to some extent by awful fundamentals elsewhere, UK difficulties and a renewed focus on the banking sector are likely to trigger a move towards 1.50 during the next few weeks with selling rallies still an attractive option. The Bank of England again took a generally downbeat view of the UK economy in the June MPC minutes, warning that the worrying downturn in demand is likely to persist for ... (full story)