ICICI Direct, The pound dropped by almost 0.30% on Friday on rising expectations the UK economy could slip into recession after the Bank of England delivered an outsized rate hike in response to persistent inflation.
ICICI Direct’s currency report on GBPINR
The pound dropped by almost 0.30% on Friday on rising expectations the UK economy could slip into recession after the Bank of England delivered an outsized rate hike in response to persistent inflation. Further, pound came under pressure as the UK manufacturing PMI dropped to 46.2 in June 2023, down from 47.1 in the previous month and below market expectations of 46.8. The report indicated a further contraction in output levels, accompanied by a sharp decline in new orders • The pound is expected to trade with a negative bias as fresh economic data from Britain showed signs of economic slowdown. Additionally, investors fear that UK economy could slip into recession after BOE went for enormous rate hike. The pair is expected to drop towards the level of 1.2660, as long as it sustains below the level of 1.2745. GBPINR is likely to trade in downward trend towards the level of 103.95.
Intra-day strategy
| GBPINR June futures contract (NSE) | |
| Sell GBPINR in the range of 104.24-104.25 | |
| Target: 103.95 | Stop Loss: 104.45 |
| Support: 103.90/103.80 | Resistance: 104.40/104.60 |
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