Barclays’ share price remains in a tight range despite strong UK economic data, trading around 195p for the past few days.

As a major UK bank with a strong presence, including its popular Barclaycard, Barclays tends to perform well when the UK economy is strong.

Recent data points to continued economic recovery. On Tuesday, government figures showed the unemployment rate fell to 4.4%, the lowest since the pandemic began. On Wednesday, the Office of National Statistics (ONS) reported that inflation reached a decade-high, with headline CPI rising to 4.2% and core CPI hitting 3.4%, driven largely by surging oil prices.

These figures are important for UK banks like Barclays, Lloyds, and NatWest because they suggest that the Bank of England may take a more aggressive approach to monetary policy. This could include ending quantitative easing and raising interest rates, a scenario in which Barclays’ share price typically performs well.

Analysts are optimistic about Barclays’ stock, with a median price target of 236p, according to MarketBeat, which is about 20% higher than the current level. Shore Capital and Morgan Stanley are among the most bullish on the stock.

On the four-hour chart, Barclays’ stock has formed a “break and retest” pattern, which occurs when an asset retests key support and resistance levels. The stock retested support at 190p, which was the highest point in April. It remains above the 25-day and 50-day moving averages.

The outlook for Barclays remains bullish, with the next key resistance level at 205p, the highest point this year. However, if the stock falls below 190p, this bullish view would be invalidated.