Lloyds (LON: LLOY) share price has been in the midst of recovery since dropping to its fresh yearly lows in March 2023. Since then, the shares of the British banking giant are up 12.2%. Nevertheless, the 50p psychological barrier has become major resistance now, and the price has recently been rejected from the level.
On Tuesday, most UK shares remained sideways as the benchmark FTSE 100 index entered consolidation after a strong rally. The bank shares still added to their weekly gains, and Lloyds shares were also up 1.34%. Our analysis reveals that there could be a lot more downside for the stock if it doesn’t break above 50p soon.
As per the latest Lloyds news, the bank has recently unveiled a new payment service for businesses. The new service known as PayMe lets businesses make one-off payments without having to gather account information or register suppliers. The announcement was made via an official press release on Monday, April 17.
In other news, the bank has also recently invested £10 million in Yoti to secure the personal data of its customers. After a massive rally in the first few weeks of 2023, Lloyds share price was looking very strong. However, the price action reversed as global banking concerns peaked after multiple bank failures in the US.
The recent rejection of LON: LLOY from 50p has put another retest of 46.35p on the cards. This will be the second retest of the 200-day moving average by the shares. If enough buyers don’t step up at this level, then new yearly lows are also likely.
The only way to avoid this bearish Lloyds share price forecast is for the stock to break above 50p soon. Such a move must happen soon, or the bears will gather enough momentum for another downward push.
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This post was last modified on Apr 18, 2023, 15:54 BST 15:54