I predict <1.20 before the end of the month. UK imports way more than it exports, a weakening currency is bad.
Keep your eye on the FTSE 250, not the FTSE 100. And obviously GBP/USD.
Uk has a trade deficit and a fiscal deficit but we should find out how much that is in comparison before assuming Euro and Dollar are now far stronger. EU obviously has problems with the fallout of failing nations and correcting debt and lack of production there. The point with a floating exchange rate is that it is making the export producers 10% more competitive since currency fell, especially if all their costs are based in UK. EU and others are now in competition with a cheaper source of labour among a few other factors, Im not stating this as a positive for people of UK but the business itself is far more able to undercut prices of its foreign rivals then previously
FT250 is way more UK based. Its also possible the index will see rising prices of exporters in demand as they see more orders at their new prices, it definitely shakes things up. When the Sterling rate to Dollar fell from 2 back in 2008 I remember reading a clothes producer saying they were now rushed off their feet by new demand for UK production, its a very great effect to them when trying to match prices from China, Pakistan and obviously USA and EU. They were able to win more business, contracts exceeded their ability to produce over that entire year now they had a queue of customers willing to wait for their demand to be met. With a strong order book, the business was more secure and able to finance itself and even expand with the solid support from its clients orders waiting.
Just that natural effect meant that as a producer of clothing, their business was better off as they were able to adapt. I dont know every business will thrive but Im certain some will. The owner and workers were better off and more people were employed to meet that adjusted demand from global imports to more local production.
My point really is that we dont know how things will unfold, I imagine longer term this makes exploring for oil in North sea now more attractive as we again have to pay more for imported production and transportation of oil. Of course they will struggle to make it as cheaply as the Arab nations can but the balance is never fixed. We cant know UK is doomed to a negative result on all counts, its just not that simple