GBPINR – Prices expected to rebound

GBPINR – Prices expected to rebound

Prabjeet Singh
02 Aug 2019 06:03 PM
Observing the daily chart of GBPINR, we have witnessed a steep fall in the prices on 29th July, 2019 from 85.30 to 83.93. The steep fall in the price action sent the momentum indicators in the oversold zone. However, the prices consolidated after this fall. We also observe a price divergence in the momentum indicators. Applying Relative Strength Index (RSI) and Stochastic Slow (StochS), we see that the RSI and StochS are making higher lows whereas the price action has been making lower lows as shown in the chart connected by the trend lines. This divergence in the momentum indicators and the price action is a strong indication of prices to reverse its recent phase of downfall.