London, March 16 (Bloomberg) -- Jane Foley, a currency strategist atBarclays Capital Group, comments on the outlook for the British pound: ``U.K. fundamentals are sound. We're seeing decent levels of growth.Market sentiment is bad'' towards the pound, she said. ``Sterling is stillvulnerable to dollar strength. U.S. growth may remain soft, though we'reexpecting stabilization. Things will improve in the second and thirdquarters. We're dollar bulls.'' ``Interest-rate spreads are not a strong factor'' at the moment indetermining the pound's value, she said. ``Look how much the FederalReserve cut interest rates this year, and the dollar has strengthened.'' ``If euro-dollar goes down it is difficult for cable (sterling-dollar) to hold itshead above water. The factors weakening the euro are all still there.'' She is forecasting the pound at $1.47 by the end of the second quarterand $1.42 by year-end, and the single currency at 89 U.S. cents by theend of June and 85 by the end of the year.