Lloyds share price has begun a gradual recovery after the S&P Global Ratings agency upgraded the outlook of Lloyds Bank and several other UK and European banks. The outlook of Lloyds Bank, Natwest and two other UK banks has been revised from negative to stable.
The S&P Global Ratings agency based its upgrade on the expectation of a 7% growth in the UK economy, with bank earnings expected to benefit from exclusions of loan-loss provisions for H2 2021. The S&P Global Ratings agency further opined that the asset quality of the four banks is expected to remain robust.
Technical Levels to Watch
Following a correction that resulted from the breakdown of the rising wedge, Lloyds share price has staged a recovery from the bounce on the 46.00 psychological support. This bounce has taken the price above the 46.615 price support, with a slight pullback to that level. A bounce from this new support targets 48.125, with 49.205 and 50.435 serving as additional targets to the north.
On the other hand, a breakdown of 46.615 allows for a dip towards 44.990. A further decline could extend towards 43.845, with 42.995 serving as an additional support target.