Forex - Pound hits 1-week low vs. dollar after rating warning

Forex Pros – The pound sank to a 1-week low against the U.S. dollar on Wednesday after a credit agency issued a warning over Britain's AAA rating. 

During early European trade, GBP/USD plummeted to 1.4885, cable's lowest rate since last Wednesday. The pair subsequently bounced to 1.4932, still shedding 0.44%. 

Cable was likely to find support at 1.4781, last Monday's low and a 10-month low, and resistance at 1.5575, the high of Feb. 23. 

Sterling also fell against the yen, with GBP/JPY shedding 0.15% to reach 134.72. 

On Tuesday, the Fitch ratings agency said it was "uncomfortable with the fiscal adjustment path set out by U.K. authorities", and called for a "more credible and stronger fiscal consolidation plans during 2010." 

Moody's, another agency, warned that the Bank of England's withdrawal of its Special Liquidity Scheme by 2012 would leave the banking system "fragile." 

Meanwhile, Britain was set to release on Wednesday key data on manufacturing production, a leading indicator of economic health.