GBP/USD closed higher due to profit taking on Tuesday but remains above the 10-day moving average crossing. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bullish hinting that additional short covering gains are possible. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted. If it renews this month's decline, the 87% retracement level of 2009's rally crossing is the next downside target.