On Thursday, GBP to INR exchange rate rebounded from its lowest level in the past 6 months. The GBP/INR pair has been in a tailspin since hitting its yearly peak of 107.91 in July. During this time, the pair has plummeted 6.06%, signaling the strength of the Indian rupee against the British pound.
During its London session, GBPINR stood at 101.43 after rising 0.43%. The rebound in the currency pair comes on a day when the DXY index is down 0.31. This shows that the British pound has gained strength against the US dollar.
The recent correction in the British pound to the Indian rupee pair can be attributed to two main factors. The soaring 10-year bond yield in the US has sent the DXY index to its highest level since November 2022. This resulted in an increase in USD strength compared to other major currencies like GBP.
The other factor is the Reserve Bank of India’s regular interventions in the market. The central bank has kept offering dollars to keep Rupee stable against the greenback. This factor increased the strength of the Indian Rupee against the British pound, causing a major correction in GBP to INR.
The high timeframe outlook on the pair has flipped bearish after a strong sell-off in the pair. The pair has slid below the 200-day moving average, which is a major sign of weakness. The acceptance below the 103.26-104.15 supply zone further solidifies the bearish outlook.
GBP to INR forecast is looking very bearish as the above-mentioned weakness has put a retest of the 97 support on the cards. In order to avoid this outlook, the pair needs to find strength above the 200-day moving average, which currently lies at 103.28.
Now you can also follow me on Twitter to keep track of my personal trades and the latest analysis on the forex pairs.
This post was last modified on %s = human-readable time difference 12:59