Lloyds share price (LON: LLOY) is showing strength as the global equities keep tumbling. The UK banking industry is one of the biggest beneficiaries of the ongoing quantitative tightening. The increased interest rates have significantly increased the operating profits of industry leaders like Lloyds and Barclays.
On Tuesday, Lloyds share price UK opened higher but couldn’t gain momentum during the early trading hours. At press time, the price is trading at 51.72p after posting minor gains of 0.08%. My overall outlook on the price is still bullish, as the rates are expected to remain high for the foreseeable future.
When Will Lloyds Shares Reach £1?
Lloyds banking group plc is one of the biggest investment banks in the UK. Lloyds shares trade on the London Stock Exchange which is the country’s biggest bourse. The shares that trade under the ticker LON: LLOY are basically penny shares due to their very low price per share.
Most retail investors are holding shares of Lloyds Bank, expecting it to reach £1 in the near term. This means a 93% price increase from current levels. It is worth mentioning here that Lloyds share price was trading much higher than 1 pound before the 2008’s financial crisis.
The Bank was on the verge of bankruptcy when the British government saved it via a bail-out package. Since then, the shares have been trading below £1 and even fell to 23 pennies in 2020. Nevertheless, 2023 is the best time for the price to surge to reclaim the 1 pound level. If Lloyds share LSE fails to break above this barrier amid such high rates, then it will stay below it for the next many years.
Lloyds Share Price Forecast
It is quite evident from the following chart that LON: LLOY is enjoying a massive uptrend that started in October 2022. For the past few weeks, the price has faced a slight pullback but the momentum is still with the bulls. In the coming days, I expect the price to retest the February high of 54.5p. A reclaim of 56p level will make Lloyds share price forecast very bullish.
Short-term traders must also know that a break below the 50p psychological barrier will be extremely bearish. In such a situation, I expect the price to retest the 45p level, where lies the 200-day moving average.
