GBP/INR may rise 240 - 345 pips

Our pivot point stands at 106.020.

Our preference

The upside prevails as long as 106.020 is support.

Alternative scenario

The downside breakout of 106.020 would call for 105.845 and 105.741.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is positive and above its signal line. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 105.990 and 105.887).

Supports and resistances

106.757 **

106.653 *

106.549 **

106.444

106.204 last

106.088

106.020 **

105.845 *

105.741 **

Number of asterisks represents the strength of support and resistance levels.