Barclays’ share price is showing signs of recovery after gaining 1.62% during Tuesday’s trading session in London. This increase pushed the stock above Friday’s peak, which had already risen by 4.49%.

One of the factors driving the stock’s recent gains is the expectation of another interest rate hike from the Bank of England in its upcoming meeting on September 15. With UK inflation expected to rise further, exacerbating the cost-of-living crisis, the central bank may be forced to take action to address the situation.

Barclays recently sold its 7.4% stake in Absa, its South African operation, for £538 million, marking a loss of £31 million on the sale. This divestment is part of Barclays’ 2016 strategy to refocus its operations in the US and UK markets. The move came as the stock found support around the 161p level, following a slight correction from its rebound that began on July 29.

For the current daily candle to confirm a bullish breakout, it needs to close at or above the current price, meeting the 3% penetration filter for the 167.86p level (the lows from June 8 and August 11, and the high from August 30). A close above this level would open the door for the bulls to target the 173.60p resistance, which was the high on May 30 and August 17. If momentum continues, additional resistance levels could be reached at 177.34p (the high from March 17, 2022) and 186.14p (the high from December 16, 2021).

On the flip side, if the stock fails to meet the 3% penetration filter, the 167.86p level could come under pressure. A breakdown below this level would give bears the opportunity to target the 161.62p support (the lows from August 5 and August 30). Further declines could bring the 156.92p support (the lows from March 10 and June 29) into focus. If the bulls are unable to hold these levels, 151.12p (the lows from May 19 and July 18) and 147.48p (the lows from May 13 and July 12) could become the next targets.