GBP/INR Analysis
Morning Report: The GBP/INR pair is currently trading near 105.50 on the daily chart. Will it continue to drop or turn around?
The GBP/INR was trading at the important resistance zone of 106.50, where it was vulnerable to both large supply and severe rejection, as previously discussed in our study. Following that, the pair closed below the resistance level and is now trading between 105.00 and 105.50. For GBP/INR, a strong supply zone exists between 106.50 and 108.00.
- The GBP/INR exchange rate plummeted dramatically as supply approached 106.50 levels.
- According to the chart, GBP/INR could face additional downward pressure, and any gain provides an opportunity to sell this pair.
- The Relative Strength Index (RSI) does not indicate a sudden increase in the GBP/INR price.
Please refer to the chart above. In November, the pound rose against the rupee, rising from between 100.50 and 101.00 to 106.50. The GBP/INR slid from 106.50 to the 104.80-105.00 range as sellers controlled the market and drove the price lower when it reached 106.50. This was caused by the currency pair's robust supply.
GBP/INR fell further after encountering significant resistance in the 106.50 zone. As we stated in our most recent report, the GBP/INR was trading near 106.50, a resistance level. Negative divergence occurred when the price hit higher highs and the RSI hit lower lows. This means that every increase gives an opportunity to sell the GBP/INR pair; continuing shorting on climbs and taking profits on declines, then repeating the process.
Please check the chart below, as we utilize the RSI to discuss GBP/INR:
The GBP/INR recovered favorably throughout that period, rising from 104.00 to 106.50, as seen in the accompanying chart. Not only that, but the chart above illustrates that the Relative Strength Index (RSI) is falling to lower lows while the price rises to higher highs. The negative divergence between the RSI and the price on the daily chart suggests that the GBP/INR will most likely fall.
RSI divergence refers to any price movement that deviates from the RSI, to put it another way, a chart can show a change in momentum before a corresponding change in price. When a lower high coincides with greater highs in the price and the RSI reading is overbought, a bearish divergence occurs.
The GBP/INR range of 103.50-104.00 is exposed to further drops. According to the chart, the GBP/INR could see further downside volatility in the coming days, with each uptick presenting a potential selling opportunity for the currency pair.
Please refer to the daily chart to determine the GBP/INR support and resistance levels. Every level is represented by a spot chart.
|
GBP/INR |
Support |
Resistance |
|
Level 1 |
104.00 |
106.50 |
|
Level 2 |
103.50 |
108.00 |