Pound to Indian Rupee Resuming Downtrend
GBP/INR’s recovery from off the October 2016 lows appeared to establish a significant low, however, it looks as if the rebound has finally run out of steam and the longer-term downtrend is taking over once again.
Poor UK data for the first data, which was reinforced by the steep slowdown in data out on Friday, which showed a decline in Industrial and Manufacturing Production in March, has been a major factor in the fall.
The pair has broken below the key 80.39 lows, confirming a continuation down to a target at about the 79.53 lows.
The current level of the market is 79.80, giving room for another 37 point drop.
The exchange rate is below both the 50 and 200-day moving averages indicating it is in a strong bearish market.
The MACD is below zero and has just crossed over its signal-line, providing another bearish sign.
The most significant level is that of the October lows at 78.82, which, if reached, is expected to act as a support level, preventing further declines, or at least slowing down bearish momentum.
A break below 78.50 would act as confirmation of further downside, with the next target at round number support at 78.00.
