GBP to INR Rebound From January Lows Capped At 92.9295
GBP to INR rebounds today with gains 0.45% at 92.6007 as the pair rebounds from almost two-month lows as the British pound is under pressure. Investors increase bets that the Bank of England will proceed with a rate cut even in the January policy meeting. Several MPC members made dovish comments including Saunders, Carney, Vlieghe and Tenreyo. Above that recent economic data out of UK disappointed investors.
On the other hand Indian economy facing its own problems as is experiencing a sharp slowdown. The unemployment rate is rising while the corporate profits are declining. Reserve Bank of India, in December cut its forecast for 2019 growth in gross domestic product to 5%. The central bank of India in its December 5th policy meeting left benchmark rates unchanged at 5.15 per cent and the reverse repo rate also constant at 4.90%.
On the technical analysis side, GBP to INR short term outlook is positive as the pair trades above the 200 and 100-day moving averages. The pair retreated in January from 94.95 high and hit the 2020 lows at 91.7409.
On the upside, first resistance for GBPINR stands at 65.6898 today’s top. If the GBP to INR pair breaks above that level the next hurdle stands at 92.9281 the 50-day moving average. Next resistance to the upside will be met 93.9120 the high from January 9th.
On the downside, immediate support for the pair stands at 92.1884 today’s low. Reliable support might provide also the low from January 13th at 91.7469. A convincing break below the January low might pave the way for a move down to 91.0859 the 100-day moving average.