GBP to INR (GBP/INR) pair turned red on Thursday as the Indian Rupee gained strength. The rise in the DXY index gave the British pound its first blow of the week. At press time, sterling was down 0.42% in terms of the US dollar.
The fluctuation in the cable pair also affected the Pound to Indian Rupee exchange rate. Even though the Indian Rupee also fell 0.16% against the US dollar, it still showed strength compared to the British pound. At press time, GBPINR was trading at 104.868, which is 0.3% lower than its previous close.
GBP/INR Rebounds From July Lows
In August 2023, the GBP to INR rate retested its July 2023 lows. However, the pair bounced off the major demand zone and is now gaining momentum. In the coming weeks, analysts are expecting the British pound to gain strength due to the softening dollar.
As long as the pound holds the 1.26 level against the US dollar, Indian Rupee is difficult to gain any significant strength. Today’s pullback could be temporary if GBP/INR holds a 104.78 level. Let’s try to predict the price action of the pair with the help of technical analysis.
GBP To INR Forecast
The following chart shows that the Indian Rupee fell to its all-time low against the British Pound in July 2023. On a higher timeframe, the pair is once again gaining strength after a major pullback. In case of a reclaim of the 104.78 level, I expect a retest of the range highs around 106.46.
However, this bullish GBP to INR forecast is only likely to be met if the pound extends its gains against the US dollar. Further rate hikes by the Bank of England may act as a catalyst for such a move in the coming weeks and months.
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