If the public believes that the official Brexit will cause a recession and prompt swift action from the Bank of England in the near future, what will happen to the value of the pound in the short run?

Illustrate using the foreign exchange market with the British pound as the domestic currency (i.e. $/). Given the change in interest rates and in the $/ exchange rate, explain what we would expect to happen to aggregate demand in the U.K. Illustrate the effect on the AD/AS framework for the U.K. What happens to equilibrium output and inflation?