Derrick says that limit could be when the pound hits one-to-one with the euro or the dollar, something that has never occurred with either currency. One mitigating factor today is that Britain’s economy appears on the whole more able to withstand a similar drop in the pound. If the pound does drop more sharply, the Bank of England could be the first responder in any attempt to stabilize it. That would likely support the pound — higher rates tend to bolster a currency. “The main challenges (to Brexit) today are coming from the financial markets,” said Professor Iain Begg of the London School of Economics.

Source: thestar October 20, 2016 15:56 UTC