GBP fell amid U.K. rating fears following an article in the U.K. Telegraph warning over Britain's AAA credit rating due to the scale of the bank bailout. The story is citing a potential review in the U.K. rating by S&P, just a few weeks over it confirmed its stable outlook for U.K. sovereign debt. S&P said it might have to revisit the rating in evidence before the TSC last month. However, there is little fresh news in the Telegraph story, which may prompt denials later on in the session. Nevertheless, GBP sentiment has soured since the market reacted to the headline, which forced Cable from 1.4300 down to 1.4170 lows, while EUR/GBP rallied to 0.8908 compared with earlier lows of 0.8827. We would anticipate GBP buyers to enter the market around current levels, with Cable bids seen at 1.4150, 1.4130 and 1.4100-10, while EUR/GBP offers are tipped from 0.8920.
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