Saxo Bank's head of forex strategy John Hardy expects the pound to trade lower. He says the UK economy has been hit with a big dose of uncertainty.

Hardy says that the Bank of England will conduct quantitative easing, but he thinks the pound could make a quick rebound if the focus of the central bank and government is put on fiscal stimulus rather than rates cuts.

In the short term, Hardy believes the GBPUSD is looking lower, but in the long term he thinks EURGBP and GBPCHF are turnaround candidates with regards to sterling strength.