After acting as dead currency in July 2014 Great Britain Pound has showed outperformance against INR.

Recent
sharp up move in the currency pair has surprised everyone because this move
came after a long sideways action. These are some of the times where as a
trader one quickly needs to change his/her stand and adopt new strategies to
capture a next trending move.

Dollar Index is showing strength at current levels which is the
basket of major world currency pairs like Euro, Pound, Japanese Yen etc.
Movement of Dollar index simply shows the health of US Dollar. Intermarket
analysis is working brilliantly in currency pairs. Trending move in Dollar
Index help us to gauge the trend of INR pairs. i.e- USDINR, GBPINR.      

Channeling technique is one of the basic techniques in technical
analysis and it is working brilliantly in currency pairs. It provides perfect
entry and exit points. More importantly it gives clear picture of when not to
trade. Because when not to trade is the key to success. Below we have shown
GBPINR 60 mins chart where we can clearly see that this currency pair is moving
higher in perfectly in rising channel.

GBPINR
60 mins Chart:

(This is the part of “The Forex Waves short term update”
which was published on 4^th July 2014 before the currency market
opened)

Wave
Analysis:

In
previous update we have mentioned that “any move above 102.90 level will open
possibility toward 103.50 level with risk management level of 102.15 level” BANG
ON!

GBPINR
moved in lines with our expectations and achieved mentioned level of 103.50. As
per daily chart prices have given close above the prior bar high and as per bar
technique this is positive sign.

As
shown in 60 mins chart,GBPINR has arrived near the crucial resistance level of
103.50 from where prices have reversed 3 times. As per wave perspective, entire
move which started 98.50 to103.50 level has completed wave ….and after that
sideways action was in the form of a-b-c which has completed near 102 levels.
As of now ongoing up move is probably in the form……In short, any move above…..

Move above the
crucial levels will provide trending opportunity once this correction
completes. To catch the next wave in currency markets, subscribe to “The
Forex Waves short term update” which includes research on USDINR,
EURINR, GBPINR and JPYINR. For more information visit pricing
page.