Barclays Share Price Falters Below 100GBP As Closure of Non-UK Card Accounts Looms
Barclays share price is slightly down in a day of very muted trading, as the bank has decided to shut down all accounts of customers whose bank cards are not linked to UK addresses. Barclays intends to effect this closure by November 16.
This move comes as the final Brexit deadline approaches, and UK banks continue to dither about how best to handle foreign clients within the UK once Brexit is done and dusted. This also comes as the Bank of England has announced new proposals to solve the issue of risk-weightings on home loans it considers inappropriate. The risk weighting on home loans is one of the key metrics used by the Bank of England to determine capital reserve ratios.
UK banks are presently going through a rough patch. Having had dividend payments suspended by the Bank of England (BoE), rising coronavirus cases are forcing banks to ask workers to work from home. This could lead to rising costs for the banks as they implement the BoE’s instructions on increased worker oversight. The BoE is also scrutinizing the issuance of home loans even as Brexit looms.
Technical Outlook for Barclays
Barclays share price action continues to trade within the context of the descending channel on the daily chart. Price has bounced on the 90.71 support, but a lack of follow-through buying has left Barclays share price unable to hit the 100.21 resistance target (July 31 and September 16 lows). This level must be broken for the price to attain the channel’s return line. A break above this level, as well as the channel’s return line, targets the 107.63 resistance, with 115.65 and 125.44 lining up as other targets to the north.
On the flip side, a rejection at 100.21 allows Barclays share price to retest the 90.71 support. A breakdown of this support brings in 79.42 into the picture.