The British pound continues suffering and drops below the critical support line of 1.4050, a double bottom in recent weeks. If confirmed, the pair has potential for a free fall, perhaps all the way to challenge the 6 year lows of 1.3840.
Here are 3 reasons for the fall of the pound. These are all political events, as UK fundamentals have actually been positive.
We are seeing a stronger USD against the pound as we are seeing the same across the board: the dollar is gaining ground ahead of the FOMC minutes. The pound is also losing to the Japanese yen, with the latter enjoying safe haven flows. However, sterling is also suffering against the euro, which has its own problems and basically every other currency.
Here is how it looks on the chart: