Poor economic data from the UK, coupled with the Bank of England’s decision to pause, continues to exert downward pressure on GBPUSD and GBPINR. It’s essential to remember that GBPINR’s performance is closely tied to the movements of GBPUSD and USDINR. While GBPUSD is clearly on a downtrend, USDINR remains rangebound. As a result, GBPINR is feeling the impact of a weakening GBPUSD.
If GBPUSD descends towards its January-March 2023 lows of 1.1850, GBPINR may also decline to levels around 98.50/99.00 over the medium term. However, it’s worth noting that the short-term trend appears oversold, and we can anticipate a temporary rebound during this week.
Significant resistance levels are anticipated near 102.00 and 102.50, while interim support is expected in the vicinity of 101.30 and 100.80.