Page 8 - Value Plus

POUND GBP-INR
IS IN CMP: ` 98.10 (As on 29th Jan 2016)

POWER Buy on decline : ` 97.80-97.70

We recommend buying in Target Price : ` 99.50-100.20
GBP-INR February Contract
at Rs 97.80 – 97.70 for the Stop-Loss: < ` 96.50
target of Rs 99.50 -100.20
with strict stop loss below From the last couple of month we have seen the
Rs 96.50 greatness of Great Britain Pound with respect to
Indian Rupee is losing its sheen. Fundamental analyst
all over the world are of opinion that GBP may face
adverse headwinds in connection with the referendum
on EU membership. The UK’s in-out referendum on
its EU membership will likely generate significant
uncertainty and weigh on business sentiment and
investment. Also they have expected that the UK
economy will grow till only 2% this year, down from
an estimated 2.2% in 2015 and 2.9% in 2014. All these
fundamentals kept the GBP prices down wards last
month. But for the coming month a ray of hope is seen
as UK’s Prime Minister David Cameron has voiced
optimism that EU-UK deal could be secured by the
end of February.
Though, we have seen high volatility in GBP-INR
prices these days yet they are in line with time and
prices. GBP-INR prices may take a support of “a
power line” and “a powerful trend line”.
• As per the Gann Fan principle, prices have

taken a support of 45 degree Gann line which
called a power line. The movements in GBP-INR
are following a healthy uptrend and the prices
haven’t breached the 1*1 power line of the Fan.
• Price have also taken a support of another
long term trend line which is not exact but
approximately equals to the 45 degree gann line.
Therefore we call it a powerful trend line.
At the bottom a formation of long white candle stick is
further showing strength in the trend. On global front,
GBP-USD charts are showing hopeful divergences
between prices and momentum indicators which may
fuel in prices for the short term.

8 ARIHANT CAPITAL ¡ FEBRUARY 2016