- Summary:
- The GBPINR currency pair is likely to continue the upside in the absence of high-impact economic data from India, but there's more to it.
GBPINR inched up on Friday, trading at 110.68, with 0.04 percent in intraday gains, as the pound got support from impressive UK economic data. The pound sterling has recovered ground this week to register 0.5 percent in gains over the last five sessions, recovering last week losses that saw it go down by a similar margin. In addition, GBPINR is up by 3.8 percent in the last month and is at +4.5 percent YTD.
The pound sterling got fresh propulsion early on Friday after Helifax House Price Index readings beat analysts’ forecasts. The Index rose by 0.3 percent month-on-month in August, exceeding the forecast figure of 0.2 percent. Meanwhile, the July figure was revised upwards by 0.1 percent to 0.9 percent.
On an annualissed basis, the Index grew by 4.3 percent, beating the forecast growth rate of 4.2 percent. Similarly, the July figure was revised upwards by 0.1 percent. The absense of high-impact economic data from India raises prospects of GBP’s continued gains agains the rupee heading into the weekend.
GBPINR forecast today
The 4-hour chart below shows that the bullish momentum on the GBPINR pair has recently reduced. The pair has retreated from the upper Bollinger Band, but is still above the middle band, signifying that the bulls are still in control. Meanwhile, the Stochastic Oscillator reading at 87 confirms the bullish contyrol, but also calls for caution, as it infers overbought conditions.
The momentum indicators on the 30 minute chart below calls for further upside above 110.67. That will likely see the buyers encounter the first resistance at 110.72, but they could clear that barrier and head higher to test 110.79 if they extend their control. Conversely, moving below 110.67 will favour the sellers to take control, with the first support likely to be at 110.60.
However, the strengthening of the bearish momentum could enable movement below that mark, and invalidation of the upside narrative. Also, it could extend the losses to test the second support level at 110.53.
