After hitting its lowest point since April 27, 2022, during yesterday’s early trading session, Barclays’ share price rebounded by 2% to close at 145p. Today, the bullish momentum continues, with the stock already up by 3% in early trading.

This recent upward movement comes despite growing concerns about the state of the UK economy. However, actions being taken to address these issues seem to be benefiting the banking sector, which could be contributing to Barclays’ price recovery. For instance, recent interest rate hikes by the Bank of England are expected to positively impact the banking industry’s bottom line.

On the other hand, the recent mini-budget announced by Chancellor Kwasi Kwarteng triggered a major selloff in the UK bond market, as investors grew concerned about rising interest rates and the potential for a credit rating downgrade.

The Bank of England had to step in, adding liquidity to the bond market to prevent further economic instability. Although Barclays’ share price seems to have weathered the immediate impact of the mini-budget, it offered a glimpse of the challenges ahead as the UK faces rising living costs and adapts to a new government.

During yesterday’s trading session, Barclays’ share price briefly dipped to its lowest level since April 2022 but quickly recovered to end the day slightly higher. Today, the bullish trend looks set to continue, with the stock already showing a 3% gain and likely to rise further throughout the session.

However, considering the current market conditions, my outlook for Barclays’ share price remains bearish. The recent upward movement appears to be a temporary retracement rather than a full price reversal. I still expect the share price to drop below the recent low of 141p and potentially fall below 140p in the coming sessions. However, if the price moves above 155p, this bearish outlook would be invalidated.