FXstreet.com (San Francisco) - According to David Bloom, Global Head of FX Strategy at HSBC, the pound may find some selling interest in the year ahead. “GBP’s frailties will emerge from the shadows in 2013,” Bloom explains. “Fiscal credibility is under threat; a sovereign downgrade looms. The pain of austerity is kicking in at a time when the MPC appears less activist.”

Bloom continues: “Crucially, the US has stepped back from the fiscal cliff and fears of a Euro break-up have diminished. GBP is set to lose the contest of the uglies.”