- Summary:
- Barclays share price has declined by more than 22 percent from its record highs seen less than a month ago. Here's how things could play out.
Barclays Bank share price slumped on Thursday, losing 3.70% of ita value to trade at GBX 245 at press time. The Blue Eagle bank has had a rough run in recent weeks as the trade tariff war initiated by US President Donald Trump takes its toll. It share price is down by 13.7% in the last month and at -7.6% year-to-date.
At its current price, Barclays (LSE: BARC) share price is down by 22.4% from its peak recorded barely three weeks ago. In addition, its 10-day Exponential Moving Average (EMA) recently crossed below the 50-day EMA. These statistics underlines the steep gradient downward created by the bearish sentiment around the trade tariff war. Unlike its UK peer, Lloyds Bank, Barclays has a strong presence overseas- a factor that predisposes it to a higher risk linked to the escalating trade war.
In addition, the Trump tariffs have raised prospect of central banks, including the Bank of England (BoE) cutting interest rates in May to cushion their economies. That adds downward pressure on Barclays share price as it could result in reduced earnings from net interest margin. In 2024, the bank raised its guidance for Net Interest Income to above £11 billion, adding credence to the impact of a potential interest rate cut.
That said, Barclays’ balance sheet is strong, having beaten earnings projections for the last four quarters. That provides it with financial muscle with which it could absorb a significant part of the impact of the trade tariff war.
Barclays Share Price Prediction
Barclays share price pivots at GBX 247 and the momentum favours the downside to continue. BARC will likely find its initial support at GBX 244. However, an extended control by the sellers will result in a stronger downward momentum that could potentially test GBX 240.
On the other hand, going above GBX 247 will shift the momentum to the upside. The first resistance will likely come at GBX 249. Clearing that barrier will invalidate the downside narrative. Also, it could signal a stronger upward mobility that could take the stock price higher to test GBX 252.
