BT Group Share Price Facing Huge Slide As Workers’ Strike Looms

The BT Group share price could face a steep slump as its workers who are part of the Communications Workers Union (CWU) are voting to begin a national strike over pay. If the strike goes ahead, this would be the first time in 35 years that company workers would down tools.

The dispute over pay could cause tremendous disruption, according to industry experts. Industrial ballots have been sent out to workers after BT Group and other postal and telecom companies tried to force arbitrary wage hikes, which CWU says are far lower than the national inflation figure.

In response to the current events, Deutsche Bank has set a price target of 40p for the BT Group share price. This imparts a downside potential of nearly 30% on the stock. Here is how the BT Group share price outlook pans out.

BT Group Share Price

The breakout from the bullish flag was cut short by a rejection of the move at the 191.15 resistance mark. This rejection expanded into a correction that found support at the 175.55 price level. This bounce cleared the 180.60 resistance but stalled at 183.85 (12 May and 15 June highs).

With the price now sitting on the 180.60 support, the bulls need to force a bounce that is strong enough to take out 183.85 to clear the path toward 191.15 (31 May high). Additional targets at 193.90 (12 April high) and 200.8 (psychological resistance and 17 February high) become viable on a continued advance.

On the flip side, a decline below the 180.60 support makes way for the bears, with 175.55 and 170.85 the immediate downside targets of note. Further price deterioration allows the 166.60 and 161.95 support levels, formed by the 9 March low and the 16 December 2021/8 March lows, respectively, to come into the picture as new southbound milestones. 

BT Group: Daily Chart