The British Pound Hasn't Traded This Low Since 1985

The British pound was trading lower by more than 0.50 percent Tuesday morning at $1.2758 and traded as low as $1.2737, which marks not only a new 52-week low but the lowest levels in 31 years.

The currency has been under pressure since UK Prime Minister Theresa May provided some much needed clarity over a Brexit timeline. However, there was also a lack of clarity regarding what the British economy would look like when it separates itself from the European Union in 2019.

Related Link: British Pound Tumbles After Theresa May Sets Brexit Date

Meanwhile, investors and businesses may be working under the assumption that a "hard" Brexit implies the country's financial services won't get any preferential treatment in any negotiations with the European Union.

According to Bloomberg, the British pound has also fallen against all 16 of its major peers since May's speech over the weekend. In fact, the Bloomberg British Pound Index, a measure of the pound versus other major currencies, is sitting at the lowest level ever dating back to the gauge's creation in 2004.

"We have the market facing the reality that Brexit is about to begin and we could be faced with hard Brexit," Jane Foley, a senior currency strategist at Rabobank International in London told Bloomberg. The reports about the financial sector are "just lacing the concerns the market already has about the outlook for growth, investment and jobs in the U.K. economy."

Bloomberg further noted that currency options are pricing in continued declines for the pound until at least the end of the year. Specifically, the premium on three-month contracts to sell the British pound versus the dollar indicates investors are the most bearish they have been since late July.