POUND RUPEE TIPS: sell targets done, now watch for reversal or super bearish breakdown
Pound rupee future today closed at 82.18 with loss.
On daily chart, pound rupee future price trend is bearish and trading below all short term averages. On upside 82.56 is 5 days average and 83.35 is 20 and 50 days average level and strong resistance. with strong downside move broken support of 83.3 rupee and hit august second swing bearish target of 82.15. Daily chart RSI is 32 and heading lower towards with strong sell signal and MACD below zero with bearish crossovers and divergences and head given sell signal around 84.12 levels.
Pound in month of august opened positive but failed to hold up and we saw bearish breakdown below 84 rupee. Pound rupee future after breakdown hit august bearish target of 83.3 and now after breakdown below 83.3 with strong price action and volume hit my next bearish target of 82.15.
On pound rupee weekly chart, this was forth losing week for pound and in these 4 weeks tumbled from top of 85.18 to low of 82.08. This week gbp inr future hit high 82.87 while low was at 82.08, total almost 0.8 rupee weekly range and negative closing on continues selling and still tomorrow trading is remaining for this week. Now traders must watch 82.15 as bottom support, if pound hold below it then expect super bearish trend and sharp selloff for next bearish targets 81.4 and then possibly 80.25. Reversal from here will be buying opportunity in pound sterling for upside targets of 83.3 and then 84 rupees.
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 this month.
Pound rupee weekly chart price trend is down and now suggesting bounce back move is over.
Now trading below all major averages on weekly chart with strong bearish price patterns. On upside 83.25 is 5 and 20 weeks average levels and first resistance on weekly chart. Above it 84.75 is 50 weeks average level and strong long term resistance zone. Now last 4 weeks negative closing suggesting, pound might test previous lows in medium-long terms. Weekly chart RSI is at 43 with bearish divergence and fresh sell signal while MACD is below zero with fresh corrective pattern which might eventually turn into sell signal. On weekly chart if pound breeches 82 and 80 support then expect big panic selloff for long term and pound will head my 2017 bearish target zone of 76.5 rupees.
In last 7 months, pound rupee future 4 negative months and 3 positive months which reflecting its bearish nature and look like resumed downtrend after bounce back in month of august. August 2017 monthly candle is big red with 3.2 rupee downside move from top to bottom.