Indian rupee (INR) is showing strength against the US dollar and British pound once again. As a result, the GBP to INR exchange rate slid on Tuesday. The pair was down 0.35% at press time after a 0.39% surge in its previous trading day.
On Tuesday, the British pound fell 039% against the US dollar. However, the USD/INR pair showed resilience and was up a few points. This resulted in a weakness in the sterling against the Indian rupee which has strong support by the constant interventions of its central bank.
During the New York session, GBP/INR was trading in red as the investors awaited the BOE interest rate decision. The British central bank is set to take a decision on the interest rates in the country later this week which may significantly impact the pound’s parity with other currencies.
Currently, the GBP to INR rate is 2.47% below its 200 MA which solidifies the bearish outlook of the pair. This shows that the bears still have momentum on the higher timeframe. However, on a shorter timeframe, bulls have started to step in as mentioned in the following technical analysis.
As evident from the above-mentioned daily chart of GBP/USD, the forex pair is consolidating below the 103.3 resistance level. However, a silver lining is the recent higher high on the daily chart which shows a change in character from bearish to bullish. This suggests that a break above 103.3 could be very bullish.
As long as the October lows of 100.22 hold there would always be a possibility of another retest of 103.3 level. However, this bullish GBP to INR forecast will be invalidated in case of a breakdown below the 100.22 level. This week’s interest decisions in the US and the UK would determine the direction of this forex pair for the rest of the year.
This post was last modified on Oct 31, 2023, 16:19 GMT 16:19