Lloyds share price continued on the downward track this Wednesday, after the resumption of new CEO Charlie Nunn failed to lift sentiment on the stock. Instead, traders are expressing their concern over new consumer price index data out of the UK, which showed a modest rise of 2.0% (headline) and 1.8% for the core number.
These figures were below the previous month’s readings and fell below the market expectations of 2.3% and 2.0% for the headline and core numbers, respectively.
What do the CPI figures mean for Lloyds share price? Record low-interest rates have capped the interest rates charged by UK banks on loans to very low levels. Falling inflation or in this case, an underwhelming rise in inflation, throws out any prospects of tapering or monetary policy tightening by the Bank of England, thus maintaining the low rate regime.
Goldman Sachs had already cut the price target of Lloyds share price to 45p and changed its outlook to sell, citing mortgage pricing downside risks. Lloyds share price is down 1.37% as of writing.
Technical Levels to Watch
The breakdown of 44.99 has opened the door towards 43.84. If this support gives way under the weight of bearish pressure, 42.99 and 42.01 would come into the picture as additional targets to the south.
On the other hand, a bounce on the 43.84 support could allow for a reprieve, targeting 44.99 in a new role as resistance. Continued ascent beyond this level opens the door towards 46.61, with 48.12 and 49.20 serving as additional upside barriers.