The GBP to INR price remained in a consolidation phase as investors focused the recent actions by the Bank of England (BoE) and the Reserve Bank of India (RBI). It was trading at 93.96, which was slightly above last week’s low of 91.87 The GBP/INR price has jumped by more than 10% from its lowest level in September.
BoE and RBI actions
The GBP/INR pair has been in a tight range following last week’s actions by the Bank of England (BoE). As was widely expected, the BoE decided to hike rates by 75 basis points for the first time in 33 years. In its statement, the bank pivoted to a bearish tone, signaling that it may now wait and see. According to the Chief Economist, the bank’s terminal rate hike will be lower than what the market expects.
Meanwhile, in India, analysts expect that the Reserve Bank of India (RBI) will continue its rate hikes when it meets in December. The bank has already delivered several hikes this year. However, unlike many other central banks, it has not been under intense pressure to hike rates since India’s inflation has been relatively stable his year.
The country’s economy is expected to have the second-fastest recovery this year after Saudi Arabia. And with China’s Covid-19 strategies, analysts believe that the country will benefit as more companies move there. There will be no major market news and events from the UK and India this week.
GBP to INR forecast
The four-hour chart shows that the GBP/INR price has been in a tight range in the past few days. As a result, it is consolidating at the 25-day and 50-day moving averages. The Stochastic Oscillator has moved slightly below the overbought level. It is also slightly above the key support level at 93.52.
Therefore, the GBP to INR price will likely continue consolidating in the near term. It will then have a bullish breakout as buyers target the YTD high of about 96. A move below the support at 93 will invalidate the bullish view.