FTSE 100
GBPINR is under pressure today after the Reserve Bank of India (RBI), kept the benchmark interest rate, at 5.15%, meeting analysts’ expectations. RBI hold rates for the second consecutive time after it reduced interest rates by 135 basis points in five consecutive meetings in 2019. The pair is 0.36% lower at 92.2129 close to weekly lows.
The British pound is under selling pressure after the Bank of England kept the interest rate unchanged at 0.75%. Hard Brexit worries also resurfaced after PM Boris Johnson said that the UK would maintain a hard stance to the negotiations with the EU about the trade deal after the Brexit.
RBI also increased the retail inflation projection for last quarter to 6.5% citing high input cost for milk and pulses besides costlier crude oil prices amid rising geopolitical tensions. The Indian economy facing a sharp slowdown. Unemployment is rising while the corporate profits are declining. RBI cut its forecast for 2019 growth in gross domestic product to 5%. The central bank of India in its December 5th policy meeting left benchmark rates unchanged at 5.15 per cent and the reverse repo rate also constant at 4.90%.
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On the technical side, GBP to INR short term outlook is neutral now after the pair pierced below the 50-day moving average. Sellers are in control now and a move to lower levels can’t be ruled out.
On the downside, initial support for the GBPINR pair stands at 92.0897 today’s low. The next critical support stands at 91.7932 theee 100-day moving avvverage. A break below that level will turn the pair’s momentum to bearish. A convincing break below might pave the way for a move down to 91.0776 the low from November 11th.
On the upside, immediate resistance for GBPINR pair stands at 92.6532 today’s high. If the GBP to INR breaks above that level the next resistance will be met at 93.1247 the 50-day moving average. More offers might emrge at 93.8173 the high from January 30th.