Barclays

Barclays Share Price Has Bounced Back Today – What Next?

Barclays share price is up by more than 2.66% as traders remain optimistic that the UK will reach a Brexit agreement with the European Union. The shares are trading at 145p, making it the fourth-best-performing stock in the FTSE 100. Other top-performers are Lloyds Bank, IAG, and NatWest bank. 

What happened: In a report earlier by the Financial Times, the UK and the EU are edging towards a Brexit agreement on fisheries. This could lead to potential concessions on other outstandung issues ahead of the December 31st deadline.

Why this matters: A deal between the two sides would be good for Barclays for several reasons. First, it would prevent the UK economy from losing thousands of jobs and having a sharp recession. It would also prevent the British pound from falling sharply as most analysts expect.

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Second, it would prevent more interventions from the Bank of England (BOE). For example, with a deal, the bank will likely not implement negative interest rates. These rates would affect the margins of the company’s consumer lending business.

Third, a Brexit deal will lead to more business in the UK, which is a good thing for most companies in the country.

What else: BARC shares are also rising because of the overall strong economic data from the UK. The numbers showed that the economy expanded by 16% in the third quarter leading to a 8.6% annual contraction. These numbers were better than the 15.5% increase and 9.6% decline that analysts were expecting.

Barclays technical outlook

What next for Barclays share price: On the daily chart below, we see that Barclays share price has been in a relatively tight range in recent dayss. It has oscillated between the support and resistance levels at 133p and 152p, respectively. Also, the shares are along the 61.8% Fibonacci retracement level.

Therefore, in the near term, the stock will remain in the current range. A break above 152p will see it continue rising while a move below 133p will push it lower.

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Barclays technical chart

barclays share price

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