GBP/INR: Better bid, staring at long-term bull cross
|- GBP/INR is looking to re-test nine-month highs reached Thursday.
- The daily chart shows an impending bull cross of major averages.
- Rupee could be offered on stagflation fears.
GBP/INR is currently trading at 93.88, representing a 0.17% gain on the day.
The pair had risen to 94.0616 on Wednesday - the highest level since March 4.
The Indian Rupee, however, recovered the lost ground after the Reserve Bank of India (RBI) kept the policy repo rate unchanged at 5.15%. The central bank was widely expected to cut rates by 25 basis points.
The surprise status quo decision likely put a bid under the INR. The GBP/INR pair surrendered gains and ended the day with marginal gains at 93.7140.
The pair, however, has picked up a bid in Asia, as noted earlier, and could challenge Wednesday's high as GBP/USD is gaining altitude on polls showing a comfortable lead for Prime Minister Boris Johnson ahead of next week's elections.
Further, the daily chart shows the 100-day average is on track to cross above the 200-day average in the next few days. The impending bull cross could invite chart driven buying.
Also, the upside in the Rupee looks limited, possibly on fears of stagflation in the Indian economy,
Technical levels
Resistance: 94.0616, 95.0237
Support: 93.3146, 92.84
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