The British pound sterling is down close to one percent during intraday trading on Tuesday. The declines came as price action was trading flat within the weekend gaps over the past two weeks.
The new virus strain that was reported saw many EU countries restricting travel to the UK. Alongside this, the Brexit talks have hit a stalemate again, rising prospects of a possible hard Brexit once again.
Option volatilities also jumped to the highest level since March this year.
As a result, the cable is likely to maintain its volatile movement between 1.3500 and 1.3150 levels in the short term.