Forex Market Update: British Pound Rally Stalls Out, GBP/USD Slips Below 1.65

[B]GBP experienced profit taking[/B][B] [/B]as option names caught the European interbank market long. Cable and GBP/JPY suffered the most on the pull back, with the former trading back below 1.6500 as 1.6600 option strikes capped, while the latter traded back in to 161.55. A U.K. clearer bid underpinned EUR/GBP at 0.8500 and successfully absorbed selling interest from another U.K. name. Trailing stops are currently being filled in Cable, but this pullback should not damage the underlying bull trend that is currently influencing. Elsewhere, some attention is being paid to a Telegraph article, which is citing First Secretary of State Lord Mandelson, who said that Britain will obviously join the euro.