Lloyd share price is back in focus today as investors focus on the outlook for the banking sector once the government-backed loan schemes come to an end in the 4th quarter of 2020. More than $91 million has been lent to businesses under these in extra financing using loans guaranteed by the government.
The end of these schemes could prove to be a critical test of the lending capacity of some of the UK’s top banks such as the Lloyds Banking Group. The bank was forced to take a heavy loss in the second quarter of 2020, much of it in bad debt. Loan losses for the top 5 UK banks have been estimated to be in the region of $22 billion.
Technical Outlook for Lloyds Share Price
Lloyds share price is trading at 28.595, or 1.24% lower and is looking to hit a 3-day losing streak. However, today’s candle has formed a higher low from Friday’s low, which could be an indication that downside pressure has started to thin out. However, the immediate support rests at 27.47. A breakdown of this level opens the door towards the 25.87 support, with 24.75 and 22.70 forming the next downside targets.
On the flip side, a bounce on the 27.47 support could provide the momentum for an attack on the 29.76 resistance. A breakout from there allows the July 13 and 21 highs at 31.25 price level, with 32.95 and 34.77 (30 April high) lining up to form the potential upside targets.