Lloyds (LON: LLOY) share price has continued its bounce despite a drop in FTSE 100 index. Shares of British banks are surging for the second consecutive day as the banking concerns appear to be fading. Nevertheless, the latest analysis shows that the ongoing bounce can’t be trusted.
On Tuesday, Lloyds shares rose by 0.28% after a 1% rally on Monday. Barclays, NatWest Group, and HSBC shares also showed positive price action. The bounce follows a 4.96% drop during last week, which sent the shares to their 6-week lows.
Lloyds Bank Reports 46% Increase In Pre-Tax Profits
According to the recently released financial results, the British banking giant Lloyds Banking Group has announced a 46% jump in its pre-tax profits for the first quarter of 2023. The reason behind this massive increase in profits is the high interest rate environment which has increased the borrowing cost. Nevertheless, Lloyds share price remained in the downtrend despite increased profits.
During the first three months of the year, the pre-tax profit of Lloyds Banking Group came at £2.3bn. The same figure stood at £1.5 billion in the previous quarter. The Q1 financials also beat the analyst expectations of £2bn. The Bank of England is expected to hike the interest rate to 4.5% this week.
Lloyds Share Consolidates Below 200 MA
The 200-moving average on the daily chart acts as a line in the sand for many long-term investors. A look at the LON: LLOY chart shows that the price has broken below the 200-day MA. This has given the bears enough control to target fresh yearly lows.
If the price doesn’t reclaim the 200-day moving average, then Lloyds share price forecast will turn extremely bearish. The first target for the bears could be the 44.6p support which has resulted in multiple bounces in the past.
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