LONDON (Reuters) - Sterling fell broadly on Tuesday, hitting a thirteen month low against a basket of currencies as Bank of England policymakers kept alive the possibility of more monetary easing while data showed lower annual first quarter growth. The pound touched a fresh five-month low against the dollar of $1.5912 before running into reported demand from sovereign names ahead of an options barrier at $1.5900, traders said. It also hit a near three-week low versus the euro -- which came close to the early June high of 89.76 pence, a break of which would pave the way for a move above the key 90 pence level -- and a record low versus the safe-haven Swiss franc. Data confirmed the economy grew a tepid 0.5 percent quarter-on-quarter in the first quarter, while annual growth was revised to 1.6 percent from 1.8 and the current account deficit narrowed much less than forecast. "The downward revision to year-on-year GDP was at the margin another reminder that the economic and financial performance remains deeply worrying," said Michael Derks, currency strategist at FXPro. "It could very easily be argued that the UK needs an even weaker currency," he added. The data added to the view that interest rates are likely to stay at their record low 0.5 percent well into next year, while some Bank policymakers mentioned the possibility of more quantitative easing if the economy stayed fragile. Sterling was last down 0.2 percent against the dollar at $1.5955, having earlier dipped just below the previous day's low of $1.5913. Support was seen around $1.5880 -- the 61.8 percent retracement of the rise from a low of $1.5345 in late December to a high of $1.6747 struck in late April. The euro was steady at 89.39 pence, having risen as high as 89.66 pence, its strongest since June 8. The euro has support at the 55-day moving average around 88.20 pence. "A sustained break above this 89.50 pence area would undoubtedly shift the focus towards the 90.00 area, followed by the highs in May at 91.50," CMC analyst Michael Hewson said in a note to clients. Sterling's trade-weighted index down to 78.0, its weakest since late May 2010, helped as the pound hit another record low versus the Swiss franc around 1.3269 francs as concerns about the Greek debt crisis encouraged investors to seek safe assets. However, traders said with many investors already short sterling and looking to take profit on those positions any falls in the pound may be limited. "Sterling is soft as there is no possibility of a rate hike, but it's a reasonably attractive level to buy in the short term," said a London-based head of FX sales. Investors have pared back expectations of a rate hike due to a run of dismal economic data. The BoE's dovish stance, outlined in policy meeting minutes published last week, contrasts with the position of the European Central Bank, which is thought likely to raise rates in July. Money markets are not fully pricing in a Bank rate rise until July 2012, a marked change from the start of the year when they were pricing in at least three quarter-percentage-point rate hikes by end-2011.

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