GBP/INR Analysis and Path Ahead
Morning Report: The GBP/INR pair is currently trading at 105.30 on the daily chart. Will it continue to drop or turn around ?
The GBP/INR was trading at the critical resistance level of 106.50, where it was exposed to both heavy supply and harsh rejection, as previously stated in our research. Following that, the pair closed below the resistance level and is currently trading between 105.00 and 105.50. For GBP/INR, there is a significant supply zone between 106.50 and 108.00.
- The GBP/INR exchange rate fell sharply as supply approached 106.50.
- According to the chart, GBP/INR may experience further negative pressure, and any gain represents a chance to sell this pair.
- The Relative Strength Index (RSI) does not point to a quick surge in the GBP/INR price.
Please refer to the chart above. In November, the pound climbed against the rupee, from between 100.50-101.00 to 106.50. The GBP/INR fell from 106.50 to 104.80-105.00 as sellers dominated the market and forced the price down when it touched 106.50. This was caused by the currency pair's high supply.
GBP/INR fell further after reaching substantial resistance in the 106.50 zone. As we mentioned in our most recent analysis, the GBP/INR was trading near 106.50, which is a resistance level. Negative divergence occurred when the price achieved higher highs while the RSI touched lower lows. This means that every advance provides an opportunity to sell the GBP/INR pair; continue shorting on climbs and profiting on drops before repeating the procedure.
Please see the chart below, as we will use the RSI to discuss GBP/INR:
The GBP/INR recovered nicely at that time, climbing from 104.00 to 106.50, as shown in the accompanying chart. Not only that, but the chart above shows the Relative Strength Index (RSI) sliding to lower lows as the price rises to greater highs. The negative divergence between the RSI and price on the daily chart indicates that the GBP/INR will most likely decrease.
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 see the daily chart to establish the GBP/INR support and resistance levels. Each level is represented by a spot chart.
|
GBP/INR |
Support |
Resistance |
|
Level 1 |
104.00 |
106.50 |
|
Level 2 |
103.50 |
108.00 |