Lloyds (LON: LLOY) share price is having a very bad week as the shares are already down 3.81%. After a bounce last week, the shares of the British bank have been facing increased selling pressure this week. The technical analysis shows that the price is hanging by a thread and bulls need to step in.
Till press time, Lloyds shares were changing hands at 44.18p after a 1.20% decline during today’s trading session. Shares of other banks also showed a negative price action as the FTSE 100 index lost 20 points. Lloyds stock was trading close to its last week lows.
Lloyds On Track To Close 53 Branches in The UK
According to the most recent Lloyds news, the bank is set to close 53 branches nationwide. These also include the branches of Halifax and Bank of Scotland. The move is a result of the bank’s focus on promoting its online banking services.
In other news, Lloyds Banking Groups recorded a 46% surge in its pre-tax profits for Q1 2023. This was revealed in the recently released earnings report. The exact reported figure was £2.3bn which was well above the analyst estimates of £2bn. In the previous quarter, the Banking giant had reported a £1.5bn pre-tax profit.
Despite a profit boost by high-interest rates in the country, Lloyds share price still reacted negatively to the Q1 financial results.
Lloyds Share Price Needs to Bounce Soon
The technical analysis of LON: LLOY chart reveals that 44.6p is a very critical level on the chart. This demand zone has resulted in multiple bounces and has been retested many times. A closer look at the chart also shows that the price is forming an inverted cup & handle pattern. These patterns usually tend to be very bearish.
The neckline of this bearish pattern currently lies at 45p, which is close to the 44.6p support. Therefore, Lloyds share price forecast will become very bearish if the price doesn’t break above 45p soon. If the shares lose 44.6p support then the next stop could be the 38p level which is 13% below the current price.
I’ll keep posting my updated analysis on Lloyds in my free Telegram group, which you’re welcome to join.
