Great British witnessed more than 1% fall yesterday and settled at $1.4151/pound compared to the previous close of $1.4302/pound. Previous week close was at $1.4302/pound.
Pound fall sharply after Bank of Japan refrained from taking additional policy measures to drive stalling inflation and growth in Japan economy. Central bank downgraded its view of the economy but held interest rates at minus 0.1% leading to confusion amongst investors.
Meanwhile, Fears of a relatively hawkish tone from Federal Reserve policy meet later today and hopes for a coordinated attempts to address oil glut faded after Iran refused to freeze production added selling pressure in Pound.
Oil extended overnight losses as Iran dampened hopes of coordinated action to cap output. Oil minister Bijan Zanganeh said Iran would only join discussions to cap output after its production reached four million barrels per day
On daily chart, GBP-USD has been trading within downwards slopes which is giving the shape of falling channel line pattern. Based on the above pattern GBP-USD is expect to take correction $1.4060/pound, after that sustain trade below this level probability could arise for the next level of $1.3840/pound -$1.3800 pound levels which is coincide with lower line of the channel.
On the other hand, failure of the break below previous swing low of $1.3800/pound only could witnessed trend reversal and GBP-USD appears to show 3-5% positive rally.
A fall in GBP-USD likely to bring correction in GBP-INR also, and a break below 95.20 is expect to bring decent fall towards 94.60-94.00 levels.
Traders may sell below 95.20 with stop loss above 95.60. Positional Target 94.60-94.00-93.80.
