The British pound rallied sharply amid a broad based pick up in risk appetite and GBP positive news hitting the market. Heavy speculative interest has gone through, as well as a strong presence from the Middle East after reports that the government is beginning to prepare to sell off its holdings in RBS and Lloyds Banking Group. Cable hit new trend highs of 1.5444 after buying interest came in from the 1.5335 area. If risk appetite can continue to hold up then it’s likely that proprietary names and momentum accounts will look to target the 200-day moving average at 1.5567, where it hasn’t traded since July 2008. Elsewhere, EUR/GBP is also under pressure on the GBP buying spree and traded in to 0.8801. Stops are eyed below this level.