GBP/INR Resilience Linked to RBI Intervention

The pound sterling has maintained its resilience against the Indian rupee, trading at ₹129.489 and posting a modest intraday gain. This stability is attributed to recent Reserve Bank of India intervention, which boosted foreign exchange reserves by $14.1 billion to $707 billion for the week ended August 7.

The RBI's dollar sales have increased market liquidity and reduced rupee volatility against major currencies, including GBP/INR. As a result, the pair remains firmly above its key moving averages, indicating a strong short and medium-term uptrend.

Analysts predict that over the next 2-3 sessions, GBP/INR will trade within a typical volatility band between ₹128.772 and ₹130.066. While momentum readings are positive, with MACD signaling a buy and Bull/Bear Power reflecting continued buyer dominance, the Relative Strength Index is elevated at 76.505, indicating stretched conditions.

Given these factors, traders are advised to monitor the upper volatility band at ₹130.066 for potential breakout activity or consolidation within the predicted range.