The GBP/INR price has been in a strong bearish trend in the past few days as focus shifts to the upcoming India inflation and UK jobs and GDP numbers. It dropped to a low of 91.22, which was the lowest level since October 3rd of this year. The GBP to rupee price has crashed by more than 2.55% from the highest level this month.
UK GDP and India GDP data
The GBP/INR price has been in a strong bearish trend in the past few days as concerns about the American economy continued. Analysts and investors have been focused on the recent tax cuts by the new British administration that compared the country to an emerging market.
The next key catalyst for the GBP to rupee price will be the upcoming data from the UK and India. On Tuesday, data from the UK is expected to show that the country’s unemployment rate remained at 3.6% in August. Additional data is expected to show that the number of people filing for jobless claims declined in September.
The UK will also publish the latest GDP numbers. Economists expect that the economy remained under pressure as the British pound crashed and trade deficit expanded. The ONS will also publish the latest industrial and manufacturing production numbers.
The GBP/INR price will also react to the latest inflation numbers from India. Analysts believe that the country’s inflation rose slightly in September as the cost of energy and food rose. Still, analysts believe that the Reserve Bank of India (RBI) will moderate its rate hikes in the coming months. Besides, the Indian economy is doing better than in other countries.
The hourly chart shows that the GBP to INR price has been under pressure in the past few days. It dropped below the important support level at 91.86, which was the lowest level on Wednesday. The pair has moved below the 25-day moving average while the MACD has moved below the neutral point.
Therefore, the GBP/INR price will likely continue falling as sellers target the next key support level at 90. A move above the resistance level at 91.86 will invalidate the bearish view.