Lloyds share price fell this Monday after the Financial Conduct Authority (FCA) fined the bank 90.6 million pounds for providing misleading insurance clauses to its clients.
The UK’s financial regulator also accused the bank’s insurance unit of failing to provide clear, fair and non-misleading language in renewal communications that were sent over an 8-year period. More than 9 million of the flagged renewal communications were sent between January 2009 and November 2017. The FCA also accused the bank of luring more than 500,000 clients with a loyalty discount it never intended to honour.
This is one of the largest fines ever imposed by the FCA against any bank in the UK and investors in the bank’s stocks responded negatively to the news. Lloyds share price was down more than 2% at a point but has recovered slightly and now trades 0.9% off the pace.
Technical Outlook: Lloyds Share Price
Following the attempted return move by Lloyds share price on Friday following the breakdown of the bearish flag, Monday’s downside move represents a rejection by sellers and re-initiation of the breakdown move. However, the price needs to close below the 44.99 support (8 July low) for the measured move to the south to continue. Targets are located at 43.845 and 42.995, with the latter serving as the measured move’s completion point.
A break above the 46.615 resistance truncates the breakdown move on the flip side, targeting 48.125 and 49.205 in the process. A break above 50.435 is ok to continue the uptrend on Lloyds share price.