Take a debit/credit card and use ATMs. They give you the best deal, and they're all over the city. You can go to an ATM at the airport when you arrive in London. Make sure that you notify your bank that you'll be in Europe, so they don't think someone stole the account info & freeze your access.
credit cards will give you the best exchange rates... I wouldnt take too much cash. you will really only need it for one off things like cabs, etc, unless you hit up somewhere like Camden market, etc.
Tend to keep a small amount of cash in my wallet to cover emergency situations, tips, and such things & take a credit/debit cards and used ATM near. ______________________ gotravel123.com
I would suggest you carrying an ATM card as here in london you can do most of the shopping thru them only. hardly is any place where you have to give cash. may be you can carry 5-10 pounds for emergency situations.