FXstreet.com (Barcelona) - The Sterling is falling free across the board on fears about British economy. Kathy Lien, economist at GFT affirms that the Pound could drop down to its 2001 low: The British pound has broken 2 key support levels - 1.45 and 1.40. Trends can last for a very long time in the currency market which is why there is a decent chance that we could see the GBP/USD slip to 1.3865, the June 2001 low.
On the upside, Kathy Lien foresees topping below 1.45 as the best scenario: The 1.40 level is pretty critical on a closing basis. If the GBP/USD closes above 1.40 today, we may actually see a larger bounce, but don't expect the currency pair to revisit the 1.45 level any time soon.