* Sterling slips vs broadly supported dollar * Greek jitters keep risky FX, including GBP, on backfoot * Pound to stay weak on struggling economy, BoE rate view By Naomi Tajitsu LONDON, June 17 (Reuters) - Sterling slipped against a broadly stronger dollar on Friday as deepening uncertainty regarding Greece's debt problems prompted investors to shed positions in riskier currencies including the pound. The pound hovered near a three-week low hit on Thursday after a weak reading of retail sales -- the latest in a string of dismal data fueling speculation that UK interest rates will stay low while the economy struggles to recover. Analysts said risk-averse investors would continue to sell the pound, while the view the Bank of England will hold rates at a record low 0.5 percent for months to come would keep sterling sentiment negative. "It's all about euro zone risk at the moment, as well as bad UK data and forward-looking expectations regarding the BoE," said John Hydeskov, currency strategist at Danske. Sterling GBP=D4 slipped 0.3 percent on the day to $1.6110, within sight of the $1.6078 hit on Thursday, its weakest since late May. The pound has retreated steadily from the mid-$1.64 region this week, tracking a fall in the euro versus the dollar as investors become more concerned about disagreements among European officials over a debt bailout for Greece. Many in the market expect sterling to stay weak versus the dollar, but some analysts saw the possibility of a near-term correction given the scope of the pound's fall this week. "With solid support around the $1.6000 area and the swiftness of the move from $1.6400 over the past two days the potential for a short squeeze remains quite high," CMC analysts said in a note. Technical support for the pound was seen at $1.6018, its 200-day moving average. The pound has traded well above the average all year, but a break below that level may pave the way to deeper losses. The euro EURGBP=D4 slipped 0.2 percent to 87.80 pence, staying close to a two-week low of 87.21 pence hit on Thursday. Analysts said the euro could fall towards 84 pence, a level last seen in February, in the near term if uncertainty about Greece persists. But Hydeskov at Danske argued the risk of a fall below that was limited given that the euro will gain some support from its growing rate advantage against sterling. The European Central Bank is expected to raise interest rates to 1.5 percent next month. In contrast, short-term interest rate markets are pricing in a UK rate rise in June 2012 ICAPSONIA, indicating that UK rates will stay well below euro zone ones. (Editing by Patrick Graham)

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