We use lattice Boltzmann simulations to study the effect of shear on the phase ordering of a two-dimensional binary fluid. The shear is imposed by generalising the lattice Boltzmann algorithm to include Lees-Edwards boundary conditions. We show how the interplay between the ordering effects of the spinodal decomposition and the disordering tendencies of the shear, which depends on the shear rate and the fluid viscosity, can lead to a state of dynamic equilibrium where domains are continually broken up and re-formed.