This is getting serious. Economists at ING note that the GBP/USD pair could tumble to retest the March 2020 low of 1.1415.

A fiscal risk premium looks to be going into GBP

“We note some worrying developments in the Gilt market – where underperformance of Gilts versus GBP swaps suggests some independent concerns mounting over Gilts, be it quantitative tightening plans from the BoE or perhaps even some fears over what Britain's next prime minister plans to do with the nation's balance sheet.”

“Cable retesting the March 2020 flash-crash low of 1.1415 low looks the path of least resistance. And 0.8720 is the bias for EUR/GBP.”