GBP/USD closed higher due to short covering on Wednesday as it consolidated some of this winter's decline. The high-range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are oversold, diverging and are turning neutral to bullish hinting that a short-term low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it extends the decline off January's high, the 75% retracement level of 2009's rally crossing is the next downside target.