The GBP to INR rate is up for the second day in a row as the Indian Rupee continues to take a hammering from foreign portfolio investment outflows, higher crude oil prices and emerging market concerns. The Rupee continues to face pressure from foreign investment outflows from its stock market. This Monday, this category of investors was once again in the net selling end of the market, with exchange data showing that they sold shares worth Rs 675.45 crore ($US16.266 million)
Friday’s 0.22% gain was followed by Monday’s uptick in trading sessions that have been quite choppy. The Indian Rupee had gained slightly against the US Dollar as bond yields slipped but was unable to make any headway against the British Pound.
From a technical perspective, the pair is trying to establish a pathway to the upside. This follows a break of the triangle’s upper border. However, the double bottom of 94.3257 appears to have found completion at the 95.9710 resistance mark, which could explain why the pair’s advance appears to have stalled at that barrier.
There are no major fundamental triggers this week to exert a reasonable impact the GBP to INR rate. This will render the GBP/INR pair vulnerable to technical plays, with the possible outcomes explained in the accompanying outlook section.
The GBP to INR uptick of the day is challenging resistance at the 95.9710 price mark. A break of this barrier sees the bulls aiming for the 96.7565 resistance level, formed by the previous highs of 27 April and 28 June. A break above this barrier allows the bulls to target the 30 May 2022 high at 98.1735. 98.7015 (11 April low) and 99.9543 (13 April 2022 low) form additional targets to the north.
On the flip side, failure to breach the 95.9710 resistance creates room for a pullback, aiming for the 21 July low at 95.0820. A breakdown of this support gives access to the 94.3257 price support (13 May and 15 July low), while the 93.3643 support mark (14 June low).
This post was last modified on %s = human-readable time difference 17:24