More than most currencies, sterling is being bombarded by bad news.
Brexit now casts a shadow over any virus lockdown exit, and with a trade deal with the European Union appearing elusive, the near-term uncertainty will weigh on the pound.
Severe damage to the UK economy from the coronavirus could force the Bank of England to move to negative interest rates.
BoE's Andy Haldane has said the bank was not close to implementing negative rates, but money markets are still pricing in a move below zero nL9N2CQ01R.
Fears of a deep UK recession will shape investor sentiment and hedge funds are reportedly ramping up bearish bets on sterling.
The outlook is grim and displays of stability currently seen may just be reflecting a market that is already heavily short.
However, the risk for a steeper drop is high and a return to levels below 1.2000 can't be ruled out.
GBP/USD daily Ichimoku chart: Click here