GBP/INR Analysis and Path Ahead

• 21 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 increase further or fall ?

The GBP/INR is currently trading close to the critical resistance level of 106.00-106.50, which is prone to both heavy supply and hard rejection, as previously stated in our study. Following that, the pair closed below the resistance level and is now trading between 106.00 and 106.50. GBP/INR has a broad supply range of 106.50 to 108.00. We discussed how the GBP/INR may hit 103.50-104.00.

• The GBP/INR exchange rate fell as supplies approached 106.50.
• According to the chart, GBP/INR may experience additional negative pressure, with each increase signifying 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 above chart. The GBP/INR fell from 106.50 to 104.00 as sellers dominated the market and drove the price lower as it approached 106.50. This was driven by the currency pair's high availability. We predicted in our earlier analysis that the GBP/INR would reach 103.50-104.00 during the slump, 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, indicating a big supply zone. However, due to the low demand for GBP/INR, this is only a shorting opportunity.

GBP/INR plummeted further after hitting the crucial level of 106.50. As we mentioned in our most recent analysis, the GBP/INR was trading around 106.50, which is a resistance level. Negative divergence occurred when the price hit higher highs while the RSI fell to lower lows. This means that each increase creates an opportunity to sell the GBP/INR pair; continue shorting peaks and profiting on declines before repeating the procedure. 

Additional declines resulted in a GBP/INR range of 103.50-104.00. According to the chart, the GBP/INR could see more negative volatility in the coming days, with each increase indicating 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.