GBP/USD Technical analysis: Pound bulls break to new daily highs, trapped in wedge formation below 1.3450 level

• Pound bulls broke momentarily above the 1.3439 level which is the intraday high made in early European trade.
• GBP/USD is grinding higher above the 100-period simple moving average on the 4-hour time-frame.
• However, GBP/USD is evolving in a wedge formation below the 1.3450 level, which is potentially bearish short-term. Bulls will need a strong breakout above the 1.3450  level or else a correction may be on the cards in the coming hours.

GBP/USD 15-minute chart

Spot rate:               1.3431
Relative change:    0.31%      
High:                      1.3444
Low:                       1.3387

Trend:                    Bullish

Support 1:              1.3400 handle and 100-period SMA (4-hour)
Support 2:             1.3333 Tuesday’s intraday swing low
Support 3:             1.3300 handle

Resistance 1:        1.3450 May 22 high  
Resistance 2:        1.3500 figure
Resistance 3:        1.3586 daily 200-period SMA