Pound rupee future this week closed at 83.09 with gain. This was first gaining week for pound after last 4 weeks profit booking and sell off. This week pound rupee future hit high 83.38 while low was at 82.45, total almost 1 rupee weekly range and positive closing on value buying as well as short covering.
Pound rupee weekly chart price trend is down and this week prices bounce back towards 5 and 20 weeks average levels but still below 50 weeks average level. On downside 83 is 5 weeks average support while on upside 83.2 is 20 weeks average level and first resistance on weekly chart. Above it 84.66 is 50 weeks average and major resistance zone. Weekly chart RSI is at 48 with bullish divergence while MACD is below zero with corrective pattern which might eventually turn into sell signal.
Pound in month of September opened positive and heading towards 83.25 resistance level. Pound rupee future below 83.25 will remain weak and sell for downside targets. On downside 81.4 is first major support and target zone if fails to cross 83.25 level. If gives breakout above 83.25 with strong price action and on volume then expect 84.65 and then 86.55 as bullish target zones.
On daily chart, pound rupee future price trend is bearish and still trading below 20 and 50 days average levels. On upside 82.1 and 83.26 are 20 and 50 days average level while on downside 82.85 is 5 days average support level. Daily chart RSI is 49 and heading for trend breakout and MACD is below zero but triggered fresh buy signal.
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 85 and 88 rupee zone.
In last 7 months, pound rupee future 3 negative months and 4 positive months which reflecting its bearish nature. 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 prices might move towards 85 and 88 rupee zone from long term view.