- Lloyds share price was last at £1 in 2008
- A return to £1 is seen as a psychological boost that could trigger a stronger rally
- A clearer interest rate outlook in the UK is useful to the economy and the mortgage sector is already showing strength
Lloyds share price has done well, rising over 10% in the last month to almost 97p. This is due to expected sustained high interest rates and a better full-year net interest income forecast of £13.6bn. Now, it’s close to reaching the psychological £1 mark- a level it saw last in 2008 amidst a global financial meltdown. The over 70% increase in Lloyds Bank share price in 2025 is mostly because of strong interest margins and solid results.
IG’s research points out that a clearer interest rate outlook is helping UK banks, pushing Lloyds to its highest point in 10 years. Investors are also paying attention to the Lloyds Business Barometer, which shows business confidence at a two-year high. As the UK’s biggest mortgage provider, Lloyds is a good indicator of the British economy.
Will Lloyds share price reach £1? Capital.com’s forecasts expect further increases, supported by good conditions. Meanwhile, a recent Yahoo Finance’s analysis suggests potential for high returns, with ROE at 13.26% exceeding costs, meaning it’s a good time to invest for those planning to hold long term. It’s worthwhile to think about investing now, given the current share activity and confidence levels.
With house prices settling and the mortgage shock decreasing as homeowners adjust to new rates, Lloyds (LSE: LLOY) is seeing lower impairment charges than expected. It reported £617 million in Q3 compared to fears of over £800 million.
Lloyds Share Price Prediction
Lloyds is currently in a strong uptrend, with the RSI at 59 affirming bullish hold without the risk of approaching overbought status. Primary resistance will likely come at 97.50p, near monthly highs. A break past that level could clear the path to test 98.00p. If the bulls manage to flip that mark into a support, it could serve as a springboard to target the important £1 (100p) level.
The Volume Weighted Moving Average (VWMA) level at 96.67 offers near-term support, and the upside narrative will be invalid if there’s a break below that level. Such an action will also strengthen the downside momentum, potentially goin on to test 95.00p.
Lloyds Bank share price daily chart with support and resistance levels created on TradingView
With the stock trading at 97p and showing a strong upside momentum, it is highly possible. Positive sentiment from upgraded net interest income guidance provides the fundamental backing needed for this psychological breakout
Beyond being a psychological milestone, hitting £1 represents a full recovery to pre-2008 crash levels. It signals to institutional investors that the bank has finally moved past its legacy issues and regained its blue-chip status.
Many analysts, argue it is not too late, pointing to excess returns potential, robust ROE of 13.26%, and ongoing positive momentum, despite elevated valuations.