ICICI Direct, Pound depreciated on Friday majorly on the back of strong dollar.
November 28, 2022 / 09:03 AM IST
ICICI Direct’s currency report on GBPINR
Pound depreciated on Friday majorly on the back of strong dollar. However, sharp downside was cushioned on rise in risk appetite in the domestic markets and on anticipation that BOE will continue with its rate hike path to combat soaring inflation. Additionally, news that Scottish government cannot hold a second referendum on independence next year without the approval of British government continued to support sterling • The pound is expected to trade with a negative bias on concern that rising borrowing cost may hurt households who are already grappling with cost of living crisis. BOE rate hike’s to control inflation even into recession will do more harm to currency rather than boosting currency value. Additionally, market will keep an eye on statements from major central banks policymakers to get the clue on future monetary stance. GBPUSD is facing strong resistance near 1.2200 level. As long as it sustains below this level pound may slip back to 1.1990 levels. GBPINR (December) is expected to trade in a range of 98.70-99.30.
Intra-day strategy
| GBPINR Dec futures contract (NSE) | |
| Sell GBPINR in the range of 99.08-99.10 | |
| Target: 98.70 | Stoploss: 99.30 |
| Support: 98.80/98.70 | Resistance: 99.30/99.40 |
For all Currency report, click here
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28112022 – currency
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