Barclays’ (LON: BARC) share price has seen a strong rebound from its June lows, but it’s facing a pullback again due to ongoing negative sentiment in the UK stock market. After gaining 5.62% last week, the stock has already dipped by 1.62% this week.
UK stocks are showing widespread weakness, with the FTSE 100 index struggling to gain momentum. While US stocks are benefiting from a pause in rate hikes by the Federal Reserve, UK stocks are facing challenges due to rising inflation.
According to recent Barclays news, the Financial Conduct Authority (FCA) is set to meet with the top management of major banks this Thursday to address concerns about profitability, as interest paid on savings is lagging behind rising mortgage rates.
In other developments, the credit rating agency Fitch has affirmed Barclays’ long-term issuer default rating at A with a stable outlook. Meanwhile, recent data highlights that the UK is the only G7 economy still experiencing rising inflation.
A technical analysis of the LON: BARC chart shows that the stock recently hit the price target of 141p, which had been anticipated due to several factors, including a retest of the range low and the breakdown target of the head and shoulders pattern.
For Barclays’ share price to turn bullish, it needs to reclaim the 158p level, which marks the midpoint of the range it has been trading in for several months. If this level is regained, the stock could push toward a retest of the range highs at 178p. A drop below 150p, however, would invalidate this bullish outlook.
I’ll continue sharing updates on Barclays’ stock forecast and my personal trades on Twitter, where you are welcome to follow along.