Pound Seen Turning Lower vs. Indian Rupee

- GBP/INR has probably changed short-term trend from up to down 

- There is a probability of further loses down to the next target at 88.25

- Momentum is corroborating the beginning of the new trend lower

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The trend may be turning for the Pound-to-Rupee exchange rate which is looking more bearish after breaking below 90.00

Last week we saw GBP/INR as being in a medium-term uptrend which was, on balance, more likely to extend than not, this week the pair has probably changed the trend and is now going lower:

The turning point for us was the break below the May 04 lows at 90.15 as it established a lower low and reduced the probability that the market was merely pulling back before going higher. The pair has now established a new sequence of peaks and troughs lower, momentum is dipping sharply, and we now see the market as more likely to extend lower than not.

On the four-hour time-period chart (which gives us a short-term view for the next day or two) the pair pulled back up at the last trough low until it reached the 90.15 level and then promptly was sold back down again - the previous floor became a ceiling, which is quite a common occurrence on charts.

Ideally we would now like to see a break below the 89.60 lows for confirmation of a continuation down, to the next target at 88.25 where a combination of the 200-day moving average and the trendline for the whole of the medium term uptrend from the 2017 lows is situated, and expected to present tough obstacles to further downside.

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