The Barclays share price has been under intense pressure for the past month as concerns about the company grow. The BARC stock has declined more than 34% since the start of the year and 18% in the last month. The company’s total market capitalization is currently at 22.96 billion pounds.
UK Economic Stance
Barclays share price started the week on a positive note as investors await a financial statement for its new finance minister. The stock was trading 1% higher at 144.30p.
European stock markets opened marginally higher on Monday amid the UK government’s plans to shore up confidence in its fiscal policies after weeks of mayhem. New British finance minister, Jeremey Hunt, is expected to announce tax and spending, measures later in the day.
The Treasury announced on Friday that Jeremy Hunt would announce plans to collar the government’s deficit, two weeks earlier than planned. Hunt agreed to the emergency statement with Liz Truss after concluding that the government could not manage any more complaints from markets this week.
On the other hand, the sterling pound gained against the dollar in early Asia trading on Monday amid calls for Truss’ resignation. This followed a series of damaging U-turns on Truss’ government’s “mini” budget.
The British pound jumped 1.1% to $1.13 after a 1.4% dive on Friday. However, the pound remains at 17% below its highest level this year. Analysts have warned that the UK government bonds remain vulnerable after the BoE ended its bond-buying program.
Barclays Share Price Forecast
The daily chart shows that the Barclays share price has been on a strong bear run for the past month. The stock is moving below the 25-day and 50-day moving averages. Its RSI is weak at 31, which is a point closer to the oversold region.
Therefore, the BARC stock is likely to continue falling in the coming weeks. If this happens, sellers will be targeting the support level at 130p. The stop-loss for this trade is 154.44p.