Barclays’ share price hit a major resistance level as investors considered the latest economic data from the UK. The stock reached a high of 173.22p, its highest since June 6th, representing a 16% increase from its July low. Other banks, such as Lloyds and NatWest, have also seen similar recoveries.

Barclays’ share price pulled back as attention shifted to the latest UK consumer price index (CPI) data. According to the Office of National Statistics (ONS), headline inflation climbed to 10.1% in July, up from 9.4% in the previous month, and higher than analysts had predicted.

Core inflation also rose, reaching 6.2%, above the expected 5.9%. As a result, analysts anticipate that the Bank of England (BoE) will continue raising interest rates in the coming months, which could lead to increased profits for banks like Barclays.

In July, Barclays reported mixed earnings. The company’s attributed profit grew to £2.5 billion, with a 10% rise in income. Although its investment banking division saw declines, higher interest rates helped offset those losses. Barclays also maintained a strong capital position, with its CET1 ratio rising to 13.6%. In the second quarter, 60% of its income came from the wholesale division, while 40% came from consumer banking.

The four-hour chart shows that Barclays’ stock has been in a bullish trend over the past few weeks, reaching a high of 173.22p. The stock appears to have formed a double-top pattern, typically seen as a bullish indicator. It is trading above the 25-day and 50-day moving averages but remains below the 38.2% Fibonacci retracement level.

Given this, the outlook for Barclays’ stock is neutral. A move above the resistance level of 173.22p would suggest continued buying interest, potentially pushing the price toward the 50% Fibonacci retracement level at 180p. Conversely, a drop below the support level of 162.2p would invalidate the bullish outlook.