GBP/USD closed higher due to short covering on Tuesday as it consolidated some of last week's decline. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bullish hinting that a low might be in or is near. Closes above the 20-day moving average crossing would confirm that a short-term low has been posted. If it renews last week's decline, the 87% retracement level of 2009's rally crossing is the next downside target.