The GBP/INR price made a slow recovery as investors waited for important economic data from the UK. It has also risen as investors waited for the upcoming Bank of England (BOE) interest rate decision scheduled for Thursday. It has risen by 1.53% from the lowest level this month while the USD/INR has fallen by 0.50% from its highest point this month.
BoE rate decision
The GBP/INR price will have numerous catalysts this week as investors focus on key economic events from the UK. On Monday, the Office of National Statistics will publish the latest GDP numbers. The data is expected to show that the country’s economy did well in July as manufacturing and industrial production rose.
The next important data to watch will be the latest UK jobs numbers that will come out on Tuesday. Analysts believe that the country’s unemployment rate remained unchanged at 3.8% while the average earnings index rose by more than 5%. Bank of England’s Andrew Bailey will also have a speech on Tuesday.
Meanwhile, the ONS will publish the latest UK inflation data on Wednesday. Analysts believe that inflation rose to 10.2% in August while core CPI hit 6.3%. Still, UK inflation is expected to keep rising as investors focus on the soaring gas prices.
The most important catalyst for the GBP/INR price will be the latest BOE interest rate decision. The bank is expected to keep hiking interest rates in a bid to lower inflation.
The four-hour chart shows that the GBP to INR exchange rate has been in a bullish trend in the past few days. It has risen from a low of 91.08 to a high of 92.65. Along the way, the pair moved above the 25-day and 50-day moving averages. The Awesome Oscillator has been in a strong bullish trend and has moved above the neutral point.
Therefore, the GBP/INR will likely continue rising as bulls target the next key resistance level at 93.21. A move below the support at 92 will invalidate the bearish view.