For the weakening British pound, the worst may not be over. Derek Halpenny, head of global markets research at Bank of Tokyo-Mitsubishi UFJ, said there's scope for major drops in the currency as the "Brexit" debate rages on.
"I think we're still in for potential further declines," Halpenny told CNBC's "Worldwide Exchange" on Thursday. "We could get into the high 1.20s by the time we get to the referendum."
Most worryingly for the currency, Halpenny said, was recent the U.K. services purchasing managers index, which hit its lowest level in nearly three years.
"It dropped again, and that correlates more closely with real GDP," Halpenny said. "The Brexit issue was mentioned as an element that was dampening sentiment."
Brexit, short for "British exit," refers to the possibility of Great Britain withdrawing from the European Union. The referendum won't be voted on until June 23.