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Last November, it reached traffic levels of about 17,000 daily uniques, mainly via Google. After a few short weeks at this level, the Google traffic started plummeting until it went all the way down to under 1000 a day.
Since then, it has been floating up and then down again, in repetitive cycles, but never rising above 4000 a day. For a few days, it runs at 3 or 4 thousand, then starts slowly declining down to about 1000 a day, then starts rising again and so it goes. We've checked and checked again but could not find any possible cause to account for this.
As has been mentioned in several thereads here, people have observed some problems with Google UK in terms of IP / geo-location.
I'd like to know if moving our site to a UK host, with UK IP address could help remedy the situation. Can any one throw some light on this please?
Changing hosting to a UK server would stop you having any further doubt, but my gut feeling is that you have a different problem. At first glance, your symptoms sound like the 950+ penalty, where site pages bounce from being top to bottom, sometimes in 3 or 4 day cycles, for some popular search phrases. There is a thread about this, so see if this fits your observations.