GBP/INR Analysis and Path Ahead

• 11 March, 2024 Ruchit Thakur

GBP/INR Analysis and Path Ahead

Morning Report: The GBP/INR pair is currently trading at 106.50 on the daily chart. Will it continue to increase or turn around ?

The GBP/INR is currently trading near the critical resistance level of 106.50, where it is exposed to both large supply and hard rejection, as previously discussed in our study. Following that, the pair closed below the resistance level and is currently trading around 106.00-106.20. GBP/INR has a large supply zone between 106.50 and 108.00. We discussed how GBP/INR might hit 103.50-104.00.

• The GBP/INR exchange rate fell as supply approached 106.50.
• According to the chart, GBP/INR may experience increased negative pressure, with each gain indicating a chance to sell this pair.
• The Relative Strength Index (RSI) does not point to a quick increase in the GBP/INR price.

Please refer to the chart above. In November, the pound climbed against the rupee, from 100.50 - 101.00 to 106.50. The GBP/INR fell from 106.50 to 104.00 as sellers dominated the market, driving the price down as it approached 106.50. This was caused by the currency pair's plentiful supply. We predicted in our earlier analysis that the GBP/INR would reach 103.50-104.00 in this downtrend, which it did last month. We also expected a pullback from the 103.50-104.00 zone to the 106.50 zone, as it did last week, approaching the substantial supply zone. However, this is only a shorting opportunity because demand for GBP/INR is poor.

GBP/INR fell further after reaching major resistance at 106.50. As we stated in our most recent analysis, the GBP/INR was trading near 106.50, which is a resistance level. Negative divergence occurred when the price reached higher highs while the RSI fell to lower lows. This means that every advance gives an opportunity to sell the GBP/INR pair; continue shorting peaks and profiting on declines before repeating the procedure. 

The GBP/INR range of 103.50-104.00 was achieved after further reductions. According to the chart, the GBP/INR could see further downward volatility in the coming days, with each spike signaling 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.