I'm not seeing any notable headline driving the move as this looks like just another swing in volatility for the pound this week. There is some notable short-term resistance just above 1.0900 but I would continue to pin the current range for the pair between 1.0600 and 1.1000 in the bigger picture.
The dollar continues to hold steady elsewhere, though gains have been pared slightly and not helped by this report here as well, so this is more of a flow move in the pound. Broader market sentiment also continues to be on edge with S&P 500 futures down 0.7%, European indices down roughly 1%, and bond yields pushing higher today. 10-year gilt yields are up 16 bps to 4.16% while 10-year Treasury yields are up 13 bps to 3.84% currently.
As for the pound, we heard from UK PM Truss that she's not backing down from her recent policy initiatives and that is a clear signal for a couple of things.
If the gilt market continues to come under further pressure, it would require more effort by the BOE to try and restrain the market and provide more bailouts. In essence, it has to step in with some form of yield curve control.
That just points to further decimation for the pound on the balance of things and rightfully, it should require the government to be more fiscally responsible and embrace austerity. Otherwise, the contradicting policies between the government and central bank will just make for a disastrous recipe in terms of financial stability and confidence in the UK economy.