Of the major currency pairs, pairs with pound are the most volatile now. One of the City traders said it’s nothing unusual. The political situation is uncertain and none of the traders wants to stay with the pound, it’s just too risky. In this situation, even low capital can trigger a large price move.
In the long term, the British economy is strong, although alarming signals are visible, including the outflow of capital. Long-term trends are also uncertain and a lot depends on political decisions in the next year.
In any situation of uncertainty, traders reduce their own risk by getting rid of currencies.