Pound rupee future this week closed at 87.93 with gain. This was forth gaining week for pound and in these 4 weeks pound rallied from lows of 82.45 to highs of 88.51 total 6 rupee rally in 1 month period. This week pound rupee future hit high 88.51 while low was at 86.57, total almost 2 rupee weekly range and positive closing on strong buying as well as short covering.
Pound rupee weekly chart price trend and momentum both are strong bullish and prices are trading way above major weekly averages. On downside 85.76 is 5 weeks average support and below that 84.87 is 50 weeks average level and major long term support zone. Weekly chart RSI is at 66 with bullish divergence while MACD is above zero with rally continuation signal given at 82.8 rupee level.
Pound in month of September opened weak and then we saw breakout above 83.25 rupee level and pound achieved my given bullish targets of 84.65 and 86.55. Now entered super bullish trend and hit 87.95 target and hit high of 88.51 this week while next super bullish target was at 89.8 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 88.51 in this week and pound achieved its long term recovery rally target. Now investors must watch for weekly breakout above 88.5 for long term bullish targets 95.7 and above. If fails then expect long term sharp selloff for downside targets 85 and 80 rupees.
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 positive and from low of 82.8 given almost 6 rupee candle with long term breakout signal on monthly chart.