if you have a look at the US Dollar Index, there has not been much strength here, instead there has just been a lot of selling pressure on sterling. Euro actually rallied against dollar, so there has been some buying there. Perhaps profit taking, market unsure about where this euro could go. I don't think it is expectations of trichet holding rates, because even if he does, i see the euro tanking because the market will interpret it as bad for the economy. GBP/USD is quite a dodgy pair at the moment, I would like to be long, however, I am unsure about where the pair will trade before the rate decision. I personally think all the bad news is priced in, as well as the possibility of a rate cut.