There's been much posturing in the recent press about the value of sterling dropping to it's lowest level for 30 years and the implication that we're all doomed to penury. 

There are sound economic reasons for a drop in sterling's value, as this is subject to the laws of supply and demand like any other commodity, but they are not the main culprit. There are, incidentally, benefits to a drop in value such as cheaper exports. 

If the UK reduces interest rates,  it makes it relatively less attractive to invest or save money in the UK (you would get a better rate of return in another country). Therefore there will be less demand for the Pound causing a fall in its value. 

The main culprit is speculation. The market expects a drop in UK interest rates of 0.25%, and possibly, 0.5%, as early as next week, hence massive currency speculation.

You may recall oil prices fluctuating between $50 and $150 a barrel, in spite of oil's worth as a practical commodity being unchanged and world demand remaining static. 

Many people were prepared to buy oil at an inflated price in the hope that they could, in turn, sell it at an even more inflated price and make a profit. 

... until the bubble bursts and the price plummets, triggering panic selling. This enables the well informed to buy it back from the less well informed at a fraction of the price they sold it to them at. 

Where there's sheep there's wolves - most simple hill tribesmen know this.  

So, like the FTSE 100 bounce, immediately after the referendum, sterling rates are likely to recover significantly after next Thursday when the Bank of England Monetary Policy Committee holds its regular monthly meeting. 

So now is not the time to sell any sterling based assets you may have - like the family home. Best to wait until after next Thursday.