Transactions involving different currencies

[Miguel Guedes]

Hello list!

I'm trying to understand how to record transactions involving accounts
in different currencies.  For this purpose I created a new book
containing the simple accounts subtree, one checking account in GBP and
another in EUR.  GBP is the default currency.

Now, to make this simple let's say I want to make a transfer from the
EUR account to the GBP one.  I have taken the following steps:

1) Open EUR account and move to blank transaction
2) In first split, enter 100 withdrawal for the EUR account
3) Using the TAB key, navigate to second split and enter 100 deposit for
the GBP account
4) Hitting TAB causes Gnucash to present me with a "transfer funds"
dialog asking me to specify the exchange rate, which I do by hitting the
"Fetch rate" button followed by Ok.
5) I then hit the ENTER key to record the transaction and the following
splits are created:

Assets:Current Assets:GBP +100.00
Trading:CURRENCY:EUR      +138.89
Assets:Current Assets:EUR -100.00
Imbalance-EUR             -38.89
Trading:CURRENCY:GBP      +100.00

The splits above are clearly wrong and that is most likely the result of
some erroneous action on my part, but what?

Using Gnucash 2.6.1 on Linux but similar issue happened with v2.6.9
(after I temporarily upgraded via GetDeb thinking it might be a bug).
Have attempted to follow the following guide but can't get past the
first step describing the transfer:

http://www.gnucash.org/docs/v2.6/C/gnucash-guide/currency_purchase1.html#currency_purchase2

Would appreciate some help as I really want to make Gnucash my
accounting tool of choice!

Many thanks.

Miguel