GBP/INR - 90 target met...sell on rallies
03 Feb 2018
Very precisely GBP/INR tested 90 in a short span of time as we shared in our previous mail sent on 11th Jan when GBP/INR was trading at 86.04 levels( new readers may scroll down to read).The triangle break out worked precisely as It has been a quick and fast move and we could capture end to end move from 86-91.50 .We had advised all exporters to wait for 90 levels to hedge and now having seen 91.40 levels most of our exporters are now hedged.On Friday the official US jobs report for January that was released was highly positive, easily beating expectations on both the headline data and, very importantly, wage growth. 200,000 non-farm jobs were added to the US economy in January against prior consensus expectations of around 180,000. Meanwhile, Sterling is under broad based selling pressure after the data and also on profit taking after recent strong rally is one of the reasons. Additionally, the pound is weighed down by re-emerging political uncertainties in the UK.
Whats on the chart?
As seen on the chart GBP/INR is testing a major long term trend line resistance around 92-92.50 mark beyond which we do not expect the pair to gain. Overall pound is expected to trade between 92.50 to 88 in the near term and upside stays limited from here with good chances of pair slipping back to 89-90 levels in the very short term. Exporters are advised to stay hedged between 91-92.50 levels for their exports. On the GBPUSD the pair is expected to find support at 1.3915 levels in the very near term which is a strong support. Only break of 1.3915 mark will open up the cards for 1.3650 which is supported by the trendline. One may look to sell pound at 1.4195 levels for a take profit at 1.40.
