The GBP/INR price has been in a bearish trend in the past few days. It dropped to a low of 94.30, which was 1.7% below the highest level this month. The price remains about 10.92% above the lowest level this year ahead of the upcoming Bank of England (BoE) interest rate decision.
BoE interest rate decision
The GBP to INR price has been in a downward trend in the past few days as focus shifts to the upcoming BoE decision. Economists expect the BoE to continue with its rate hiking cycle. Precisely, they believe that the bank will hike rates by 0.50% for the first time in months. It hiked rates by 0.50% in the past two straight meetings.
The BoE meeting comes after the latest Fed decision. In a statement, the bank said that it will continue hiking interest rates in the coming months. It hiked rates by 0.75% for the fourth straight month and continued with its quantitative tightening policy.
The GBP/INR will likely react to the latest Reserve Bank of India (RBI) interest rate decision. Economists expect that the RBI will make a surprise rate hike in its off-cycle meeting on Thursday. Like other central banks, the RBI is working to fight inflation. However, unlike in other places, India’s inflation is not all that high even since the country has taken advantage of the ongoing crisis in Ukraine.
The four-hour chart shows that the GBP to INR price has been in a bullish trend in the past few weeks. Most recently, the pair has retreated from a high of 96.10 to a low of 94.12. This price is slightly above the important support level at 93.52, which was the highest level on October 24.
The GBP/INR has moved slightly below the 50-day moving average while the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, the pair will likely resume the bearish trend as sellers target the key support at 93.50. A move above the resistance at 94.90 will invalidate the bearish view.