The UK is in a novel situation where the current Prime Minister has resigned but his successor has not yet been appointed. The leadership contest has continued or 2 months and the new PM will be announced on Monday.
Neither of the two candidates has served as PM previously and their policy intentions have only been stated in basic terms. The GBP could be highly reactive and volatile as new policies are debated and announced.
Note also that the probable PM, Liz Truss, is being supported by a majority of her Conservative Party’s ordinary membership. The membership have the decision. However, she was not initially supported by a majority of Conservative MP’s in Parliament. She might end up being a legitimately appointed PM who has only weak support in Parliament.
Long-term, only dramatic action is likely to respond to the current threat to the general electorate of inflation. Failure on this will make a Labour General Election victory probable in 2024 or sooner, which is likely to weigh heavily on the GBP.