GBP to INR exchange rate extended its gains on Wednesday as the Indian rupee showed weakness against the major world currencies. As a result, GBP/INR was up 0.14% on the second consecutive green day for the pair.
A similar trend was observed in the USD/INR pair, which gained 0.22% today. The weakness in the rupee can be attributed to the increased demand for the dollar by the oil companies. However, the trend is less likely to continue for long as beyond a certain level, the Reserve Bank of India might start to intervene.
At press time, the British pound to Indian rupee rate stood at 106.02, which is still below the monthly high of 106.41. It’s also worth mentioning here that the downtrend in the Indian rupee comes despite the dollar strength index hitting its 5-month lows.
Technical analysis points toward a retest of the 106.80 resistance in the coming days as this is a very significant level from the high timeframe perspective. As this level has been acting as a resistance for the last 10 years, it won’t be easy for GBP to INR forecast to stay bullish after hitting this level.
The broader market sentiment is also favoring the rupee. Therefore, the current bonce might end up being just a retracement.