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Barclays Share Price Erases Gains After Hitting 200 MA

Barclays (LON: BARC) share price opened higher on Friday after a 6.32% gain in its previous session. However, the sellers jumped around 151.76p, turning the daily candle red. Consequently, the shares of the investment giant were down 1.3% at press time.

On Friday, the benchmark of the UK equities, the FTSE 100 index, lost 38 points. The pullback comes after a strong surge in its previous session as the index soared to its fresh 3-month highs. This correction can be attributed to the hawkish stance of the BOE as the central bank vowed to keep rates high for longer than previously expected.

The Bank of England (BOE) kept the rates at record highs after a meeting on Thursday. However, it also disclosed that the terminal rates will remain constant until the inflation significantly cools down. This hawkish revelation is the primary reason behind today’s pullback in UK shares.

As a result, Barclays shares faced rejection from their 200-moving average on the daily chart. The stock of the British banking giant pierced through the key moving average, which lies around 150p. However, the selling pressure pushed it back below the dynamic resistance and the stock stood at 147.8p at the time of writing.

Barclays Share Price Forecast

From a high timeframe perspective, LON: BARC is gaining a bullish outlook after a breakout above the range highs. As a result, the shares are once again trading in their long-term trading range. A breakout above 200 MA will pave the way for a retest of the range mids, which currently lies at 160p.

However, this bullish Barclays share price forecast will stand invalidated if the price breakdowns below the range low of 142p which is acting as a major support. The ongoing surge is fuelled by a very strong volume, which suggests the upside is more likely than a deeper pullback.