Indian rupee (INR) is showing strength against the US dollar and British pound once again. As a result, the GBP to INR exchange rate slid on Tuesday. The pair was down 0.35% at press time after a 0.39% surge in its previous trading day.
On Tuesday, the British pound fell 039% against the US dollar. However, the USD/INR pair showed resilience and was up a few points. This resulted in a weakness in the sterling against the Indian rupee which has strong support by the constant interventions of its central bank.
During the New York session, GBP/INR was trading in red as the investors awaited the BOE interest rate decision. The British central bank is set to take a decision on the interest rates in the country later this week which may significantly impact the pound’s parity with other currencies.
Currently, the GBP to INR rate is 2.47% below its 200 MA which solidifies the bearish outlook of the pair. This shows that the bears still have momentum on the higher timeframe. However, on a shorter timeframe, bulls have started to step in as mentioned in the following technical analysis.
GBP/USD Technical Analysis
GBP To INR Outlook
As evident from the above-mentioned daily chart of GBP/USD, the forex pair is consolidating below the 103.3 resistance level. However, a silver lining is the recent higher high on the daily chart which shows a change in character from bearish to bullish. This suggests that a break above 103.3 could be very bullish.
As long as the October lows of 100.22 hold there would always be a possibility of another retest of 103.3 level. However, this bullish GBP to INR forecast will be invalidated in case of a breakdown below the 100.22 level. This week’s interest decisions in the US and the UK would determine the direction of this forex pair for the rest of the year.