What´s happening to the pound (GBP)? Please help.

[conspirator]

I have a GBP bank account in UK and a EUR bank account in Portugal.
Most of my money is in UK, and I was happy with it because the pound has always been stably high at 1.50 EUR to buy 1 GBP.
All of a sudden it's 1.25 EUR to buy 1GBP. My money in UK lost 16% of it's value when compared to my money in Portugal
Should I transfer all my money to EUR? What's happening with the pound?

See this graph:
http://www.exchange-rates.org/history/EUR/GBP/G/M

[screembloodymurder]

1. The Brits have the same sub-prime problem we do.

The government is lowering interest rates to prop up housing and the economy. Lower rates means a less desirable currency. It's value is falling.

[Angela Shelley]

2. In the past several years, it has been very easy

for a real estate owner in England to take out a second mortgage up the full value of his property, and most times, that value was "over-valued".

There has been a real estate balloon in England and now the bills are coming due.

[conspirator]

3. Thanks for the insight n/t