GBP/INR Analysis
Morning Report: The GBP/INR pair is trading at 104.00 on the daily chart. Will it continue to drop or turn around ?
The GBP/INR was trading at the crucial resistance level of 106.50, where it was subject to both massive supply and harsh rejection, as previously highlighted in our analysis. Following that, the pair closed below the resistance level and is now trading near 104.00. GBP/INR has a significant supply zone between 106.50 and 108.00. We discussed that GBP/INR may reach 103.50-104.00, which it did last night.
- The GBP/INR exchange rate dropped dramatically when supply approached 106.50.
- According to the chart, GBP/INR may face additional negative pressure, with every increase representing an opportunity to sell this pair.
- The Relative Strength Index (RSI) does not indicate a quick increase in the GBP/INR price.
Please refer to the chart above. In November, the pound rose against the rupee, from between 100.50 -101.00 to 106.50. The GBP/INR slid from 106.50 to 104.00 as sellers dominated the market, forcing the price lower as it reached 106.50. This was caused by the currency pair's abundant supply. We discussed in our previous analysis that GBP/INR may reach 103.50-104.00 in this down trend, which it accomplished last night. We are now expecting a pull back into the supply zone, although this would be a shorting opportunity solely since demand is weak in GBP/INR.
GBP/INR fell further after encountering significant resistance in the 106.50 zone. As we said in our most recent report, the GBP/INR was trading around 106.50, a resistance level. Negative divergence occurred when the price reached higher highs while the RSI hit lower lows. This means that every rise creates an opportunity to sell the GBP/INR pair; Continue shorting peaks and benefitting from dips before repeating the process.
Please refer to the chart below, as we will utilize the RSI to discuss GBP/INR.
The GBP/INR recovered nicely at the time, rising from 104.00 to 106.50, as illustrated in the accompanying chart. Not only that, but the chart above shows the Relative Strength Index (RSI) falling to lower lows as the price rises to new highs. The negative divergence between the RSI and 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 was subjected to additional decreases and attained. According to the chart, the GBP/INR may experience additional downward volatility in the coming days, with each increase representing 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 |
101.50 |
106.50 |
|
Level 2 |
100.50 |
108.00 |