[GBP/USD] continues to prove a difficult play against the Usd with the Pound independently weak, this reflected in the rally for Eur/Gbp. The cross has now broken cleanly above the 200 day moving average at 0.6850 amidst heavy UK fund demand, and a likely 0.6900 extension should build upon demand from the markets more short term focused speculators. Mixed data with the tame 0.3% GDP forecast from NIESR, (slowest since May), balanced to a degree by a more healthy sales report from John Lewis. However, the general signs from recent UK data imply a greater chance of a BOE rate cut again. Thus we have seen the bias to sell Gbp strength persist, the sharp stop fuelled drop from 1.7760 to 1.7710 since Europe's arrival underlining the danger of speculative Cable longs.