Traders are preparing for “the pound to slump” by as much as 8% as it remains under pressure amid government borrowing, Bloomberg reports.

This comes as the pound fell to a dramatic 14-month low on Monday against the US dollar which highlights the ongoing crisis in the economy, thanks to Rachel from accounts.

Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, is now warning that the “negative momentum surrounding sterling could deepen further, with the currency at risk of losing up to another 5%.”

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On Friday, sterling dropped sharply to $1.23 at one point before recovering slightly. This latest slide follows a sharp sell-off in British government bonds—known as gilts—which has sent borrowing costs soaring.

The rise in gilt yields is symptomatic of deeper concerns over the UK’s fiscal health, political uncertainty, and faltering economic performance.

Green warned that the “pound is being hit on multiple fronts” and there is “turbulence” in the Bond market amid fear of unsustainable debt, and “a lack of investor confidence in Britain’s long-term prospects are all combining to pull sterling lower.”

Bloomberg reported, “There’s sizable demand for contracts that pay out below $1.20 — around 1% lower than where the currency was trading on Monday — according to data from the Depository Trust & Clearing Corporation.

“Some traders are even betting on sterling falling below $1.12, the weakest level in more than two years.”

Jamie Niven, a fund manager at the asset management firm Candriam, told Bloomberg, “The path of least resistance is lower at this juncture.

“On one side, you have very limited pricing in of Bank of England cuts, while the fiscal concerns are also sterling negative.”