USD/INR Technical Analysis: Trapped in a bearish channel, focus on India's GDP

• USD/INR is stuck in a bearish channel since Nov. 15. 
• India's GDP is forecasted to have dropped to 4.7% in the September quarter. 

USD/INR on Thursday jumped 0.35% to 71.2490, snapping the three-day losing streak.

The pair, however, is still trapped in a bearish channel, as seen in the 4-hour chart below.

A breakout, if confirmed, would imply an end of the pullback from the recent high of 72.24 and a resumption of the rally from the Nov. 4 low of 70.5490. That could pave the way for a retest of resistance at 71.865 and possibly 72.24.

On the downside, 71.24 is key support, which if breached, could yield a drop to the ascending 100-day average, currently at 70.9359.

Markets may offer the Indian Rupee on fears of a deeper economic slowdown. India's September quarter gross domestic product (GDP) growth is forecasted to drop to 4.7% from the preceding quarter's growth rate of 5%. The data is scheduled for release at 12:00 GMT.

Daily chart

Trend: Breakout likely

Technical levels