POUND RUPEE SHORT TERM VIEW: 7th June 2019

Insignia Consultants

New Delhi

Friday, June 7, 2019

TIME: 10:40 am IST        

         

UK POUND -RUPEE (GBP/INR) SHORT TERM VIEW

Gbp/Inr (Spot/Inter-bank) Current price: 87.9500

Key support: 84.9900

Key resistances: 89.5550

Immediate resistance: 88.6950

Immediate support: 87.0550

Momentum is hyper bearish for gbp/inr. Theresa May, UK prime minister will step down today as prime minister of UK. Brexit and its issues will decide the fate of cable for the rest of the month. Political issues in UK and its relations with Eurozone will be the key. UK pound will rise but for political issues. Brexit trade negotiations and its impact on UK employment will be the key. Right now most global corporations are going slow on their UK hiring plans. Once there is clarity, I am sure UK employment numbers and pound will see a northward direction.

Technically speaking: (a) Hundred week moving average at 89.5550 is the key resistance. (b) Key long term support is at 84.9900. (c) I do not expect gbp/inr to fall below 84.9900 with every chance of 89.5550 and 91.1625 over the next three months. 

I prefer to buy some far dated put options in gbp/inr as I expected gbp/inr to form a multiyear bottom by the end of third quarter (if not in June).

Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani

NOTES TO THE ABOVE REPORT

PLEASE NOTE: HOLDS MEANS HOLDS ON DAILY CLOSING BASIS

ALL PRICES ARE IN INDIAN RUPEE UNLESS OTHERWISE SPECIFIED

Indian Standard Time (IST): +5:30 GMT

Current Market Price (CMP)

All foreign exchange prices are for inter-bank rates.