Given all the risks, sterling could fall back to 90 pence

Sterling fell in the run-up to the Brexit referendum on June 23 last year and then saw further large losses on the unexpected victory for the ‘leave’ side in the plebiscite.

The currency hit 30-year lows against a strong dollar, falling through key support levels at $1.37 to $1.38 before declining to near the $1.20 level.

After the referendum, sterling’s slide also greatly impacted the euro exchange rate, with the pair generally trading in a range of 84 pence to 90 pence over the past six months.