ICICI Direct, The pound declined 0.38% on Wednesday as data showed inflation climbed to its highest level in more than four decades in July, putting pressure on the Bank of England to bring down prices but increasing the risk of a sharper economic slowdown.
August 18, 2022 / 08:31 AM IST
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ICICI Direct’s currency report on GBPINR
The pound declined 0.38% on Wednesday as data showed inflation climbed to its highest level in more than four decades in July, putting pressure on the Bank of England to bring down prices but increasing the risk of a sharper economic slowdown. However, sharp downside was restricted by a steep rise in UK 10 year’s bond yields • The pound is expected to trade with a negative bias for the day amid a strong US dollar. Further, the pound may be pressurised as BoE expects inflation to peak at 13.3% in the fourth quarter, mostly due to a surge in energy prices. The central bank also forecast a five-quarter-long recession, beginning at the end of this year. GBPUSD is likely to break the hurdle of 1.2000 to continue its downward trend towards the level of 1.1940. GBPINR (August) is likely to trade in a range of 95.80- 96.30.
Intra-day strategy
| GBPINR Aug futures contract (NSE) | |
| Sell GBPINR in the range of 96.10-96.12 | |
| Target: 95.80 | Stoploss: 96.30 |
| Support: 95.80/95.60 | Resistance: 96.30/96.50 |
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18082022 – currency
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