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The concept of optimal filtering of observations collected with a dual frequency GPS P-code receiver is investigated in comparison to an approach for C/A-code units. The filter presented here uses only data gathered between one receiver and one satellite. The estimated state vector consists of a one-way pseudorange, ionospheric influence, and ambiguity biases. Neither orbit information nor station information is required. The independently estimated biases are used to form double differences where, in case of a P-code receiver, the wide lane integer ambiguities are usually recovered successfully except when elevation angles are very small. An elevation dependent uncertainty for pseudorange measurements was discovered for different receiver types. An exponential model for the pseudorange uncertainty was used with success in the filter gain computations.