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.
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.
Barclays technical chart