Although GBP took back its Monday gains on Tuesday, it is currently rallying higher again wiping out its Tuesday losses. This development suggests that a resumption of its recovery is now shaping up. This should target the 1.5832 level, its Aug 11'10 high at first with a loss of there allowing for more strength towards the 1.5996 level, its Aug 08'10 high. A cut through there will resume its short term uptrend from the 1.1875 level and towards the 1.6274 level, its Jan 24'10 high. To invalidate this view, a break and close below the 1.5496/74 levels will have to be established to open the door for additional weakness towards the 1.5371 level, its daily 200 ema and possibly lower. Overall, GBP remains biased to the upside in the short term despite its current price hesitation.