Barclays’ share price is seeing a significant drop this Wednesday, ahead of the Bank of England’s interest rate decision tomorrow. The BoE is expected to raise UK interest rates by 50 basis points. Despite sellers pushing the stock down by 2.10%, this potential rate hike seems to have limited further declines.

There appears to be some bargain hunting in the market as Barclays nears the completion of a share buyback program, following the issuance of billions of dollars worth of structured notes registered with US regulators.

Earlier this year, a trading error on the bank’s bond-trading desk led to significant losses, although the exact amount remains unknown. In response, Barclays filed a rescission offer worth $7.7 billion in securities, with investors submitting claims related to the error.

From a technical perspective, the trendline connecting the lows from July 15 and 28 seems to be holding after a bounce earlier in the day. This bounce may help maintain the 167.86 support level, potentially setting the stage for a push toward the key resistance level of 173.60, which has capped the stock’s price since late March 2022.

The brief dip below the 167.86 support level was met by the ascending trendline. If this trendline breaks, the next target is the 161.62 support level (the August 30 low and the neckline of a rounding bottom from June 2022). If bulls are unable to defend this level, the next downside targets are 156.92, 151.12, and 147.28 (the July 12 low).

On the other hand, if the price bounces off the ascending trendline and stays above the 167.86 support, it could open the door for a move toward 173.60 (the highs from March 23 and August 17). A further push above this level could target the March 17, 2022 high at 177.34, with the December 22, 2021 high at 186.14 and the February 2022 high at 190.34 serving as additional upside targets.