GBPINR reacted neutral after the GDP numbers, the pair traded in a narrow range after data from the UK showed that the GDP expanded at an annual rate of 0.6% in Q3 in the latest Forex Trading session. The numbers stayed above the market expectation of 0.5%, but were unable to provide support to the Pound Sterling.
The pound has been struggling as market participants are trying to assess central bank announcements, as most banks have paused monetary tightening. The return from the Coronavirus pandemic had the unexpected effect of sending inflation to multi-decade highs globally, catching policymakers off-guard.
As a result, central banks engaged in an aggressive monetary tightening in early 2022, which proved effective in taming price pressures well into 2023. However, inflationary levels remain above central banks’ targets, with worldwide policymakers reaffirming the battle against inflation is not over.
The US Federal Reserve and the Bank of England have kept the rate cycle on hold in their last two meetings, as the risks to growth from super-high rates are far more concerning than inflation itself. The Fed benchmark rate currently stands at 5.25%-5.50%, while the BoE lifted the Bank Rate to 5.25%.
The UK’s Gross Domestic Product (GDP) expanded at an annual rate of 0.6% in the third quarter, the Office for National Statistics (ONS) reported on Friday. This reading matched the second quarter’s growth and came in above the market expectation of 0.5%. While, on a monthly basis it grew by 0.2%.
Further, UK Industrial Production and Manufacturing Production increased by 0.0% compared to previous -0.5% and 1% from -0.7%, respectively, on a yearly basis in September, which made an neutral impact on the pound as per the latest forex trading reports.
Forex Trading | Technical Outlook
The GBPINR pair witnessed nearly 0.90% fall. Pair fell from the peak of 103.3731 and dropped towards 101.7576 today’s low. Now traded at 102.0171 up 0.21%.
On the above chart, after witnessing an meaningful correction, the pair is trading on the verge of crucial support 101.4595 coincided with previous consolidation area. Also, constructing a high wave candlestick which is a sign of a short time reversal in the pair. Hence, from this level pair it appears to test next resistance 102.5252-103.0750-103.9350 in days to come. That would be a part of the C wave as per the wave count theory.
On the downside, crucial support is seen at 101.4790 and a break below only the pair will drop towards 101.1250-100.7185.00.
Overall trend expect to remain positive for the GBPINR.
Commodity Samachar
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