British Pound will hold its critical level or not??
Since 16 January 2023, GBP/INR trading in a positive territory, gained more than 1.09%. GBP/INR currently trading at 100.4825 as compared to previous day’s close of 100.6466 levels.
The pound remains supported in past few trading session on the basis that the United Kingdom’s Consumer Price Index remains near 40-year highs. Additionally, the US Dollar is having a hard time with things lately.
Earlier in the week, UK CPI data showed Wednesday that there was an increase in services inflation and accelerating food/drink prices. CPI y/y stood at 10.5% as compared to forecast 10.5%) and Cor CPI y/y at 6.3% as compared to forecast 6.2% which will be a cause for some concern for the Bank of England’s policy-makers
Today, UK will publish its Retail Sales m/m data which could supportive for the GBP/INR as forecasting is seen above than previous reading. However, any disappoint will cause correction in the GBP/INR pair again. the weak economic outlook in the UK is increasing some talk that the BoE could be less hawkish on policy than previously expected and it may not take much to see the US dollar bounce back amid hawkish rhetoric from the Fed officials.
Technical, on the above hourly chart, GBP/INR trading on a verge of 100.20 which coincides with its previous swing support, a break below it will create a probability for bearish momentum. After which GBP/INR could test next support 100.05-99.65. Alternatively, pair could bounce towards its immediate resistance 100.65-100.85 in near future.
A weakness in Great British pound will give support to the US dollar also which could result slightly negative momentum in bullions during European trading session or vice versa.