GBP to INR is under selling pressure for the fourth consecutive day as the comments of the Bank of England Governor Carney yesterday weigh on the British pound. Carney said that BoE could act immediately with 250 bps rate cuts if needed through traditional interest rates cuts as well as quantitative easing and forward guidance.
The RBI in its December policy meeting left benchmark rates unchanged at 5.15 per cent and the reverse repo rate also constant at 4.90%. India’s growth revised downwards from 6.1% in the October meeting to 5%, and 4.9% – 5.5% in the second half. RBI cut the interest rates five times in 2019 reducing rates by 135 basis points in an attempt to boost India’s struggling growth.
The Indian government also downgraded forecasts to 5% the slowest growth since 2013 weighed by a banking crisis, and weak investment and spending.
Yesterday, the House of Commons has voted in favour of PM Boris Johnson’s Brexit deal, opening the way for the UK to leave EU IN January 31st after more than four decades of membership.
GBPINR gives up early gains and now is 0.17% lower at 92.8403 breaking below the 50-day moving average. On the technical side, the outlook is still positive as the GBP to INR pair trades above the major daily moving averages.
On the upside, immediate resistance for GBPINR stands at 93.2962 today’s top. If GBPINR breaks above that level the next hurdle stands at 93.8805 the high from yesterday’s session. If we have a credible break above the next resistance stands at 94.9000 the high from January 7th.
On the downside, initial support for GBP to INR pair stands at 92.7246 today’s low. If the pair closes below that level and below the 50-day moving average then the bears would take control for the upcoming trading sessions. Next reliable support might provide the low from December 24th at 92.0397. In case the GBPINR breaks below the December low might open the way for a move down to 90.9047 the 100-day moving average.