Pound rupee future is trading at 86.98 with flat gains. Pound after weak opening in September triggered reversal around 83 rupee level, give bullish trend breakout above 83.3 level and achieved my bullish swing targets of 84.65 and 86.55 rupees. Above 86.55 entered super bullish trend for upside targets of 88 and 89.8 rupee and we already saw high of 87.33, 2 days back.
On daily chart, pound rupee future price trend is super bullish and pound will remain buy and accumulate above 86.55 support zone. On downside 86.34 rupee is 5 days average below that 84.75 is 20 days average and 84 is 50days average level and last support zone on chart. Daily chart RSI level is now at 76 and heading higher in overbought condition due to strong buying momentum. MACD is above zero with buy signal given at 82.8 rupee level. Traders can use intraday retracement towards 86.55 as buying opportunity with stop loss for targets 88 and then 89.8 possibly. Fundamentally, interest hike in UK will push pound on upside while equity markets on downside.
From investment point of view, pound is downtrend and recorded 2017 low near 80 and was bouncing back towards resistance level of 88.5 and we saw high of 85.19 in July and then fresh sell off till 82 rupee level. Now formed fresh bottom at 82 and heading higher towards 88.5 rupee zone. Saw high of 87.33 this week. In last 7 months, pound rupee future 3 negative months and 4 positive months which now reflecting long term recovery phase of pound. In month of august we saw profit booking and range of 3 rupee plus on profit booking as well as on fresh selling. Now September opened with positive move and strong buying as well as sharp short covering covered august losses and pound is heading higher with almost 5% plus gains in this month.