GBPINR trades higher for the third day in a row after the pair tested on Tuesday the 100-day moving average and bounced strongly to one-week highs. The UK GDP monthly release revealed that the UK economy showed a contraction in February, at -0.1% below the expectations of +0.1%, the previous reading was at 0.0%.
The UK Manufacturing Production increased by 0.5% in February, beating the expectations of 0.1%while the yearly reading came in at -3.9% topping the expectations of -4%. The United Kingdom Index of Services came in at 0.2%, topping the forecasts of 0.1% in February. The UK Total Trade Balance declined to £-2.793B in February from the previous £4.212B.
The Indian rupee remained under pressure amid a significant rise in coronavirus cases the last week in the country and weak domestic economic data.
On the technical analysis side, GBP to INR outlook is positive as the pair tested and bounced successfully from the 100-day moving average. The pair retreated from yearly highs after the coronavirus crisis hit the UK and managed to rebound from the lows of 86.00 as the coronavirus outbreak hit India.
On the upside, first resistance for GBPINR stands at 94.8489 today’s top. If the GBP to INR pair breaks above that level the next hurdle stands at 95.3285 the March 12 highs. Next resistance to the upside will be met 96.0659 the high from March 11.
On the flip side, immediate support for the pair stands at 94.1157 today’s low. Reliable support might also provide the low from yesterday’s trading session at 93.1893. A convincing break below yesterday’s low might pave the way for a move down to 92.8330 the 100-day moving average.