Lloyds Share Price Ends 2-Day Losing Streak As UK PM Tries to Rescue Brexit Trade Deal

Summary:

Attempts to rescue the Brexit trade deal have allowed for risk-on optimism on the FTSE 100, which has also rubbed off on Lloyds share price

Lloyds’ share price appears to have reversed the losing start to the week. The Brexit trade talks impasse triggered the losses suffered on Monday and Tuesday on the FTSE, which weighed the stock down. Optimism has risen as the UK Prime Minister Boris Johnson has flown to Brussels to try to avoid a no-deal Brexit, barely three weeks to the end of the transition process.

Lloyds Banking Group and other UK banks will be the participating banks for the UK government’s rescue package for exporters. The UK government has announced that it will expand loan guarantees for exports to promote overseas sales once the country leaves its biggest trade market.

Technical Levels to Watch

Tuesday’s downside move saw Lloyds’ share price retreat to the 37.02 support. The bounce of Wednesday on this support was enhanced by an upward gap, allowing Lloyds’ share price to hit a 1.3% gain at the time of writing. This puts the bank’s stock on the path to the 38.26 resistance, with 39.53 and 40.66 lining up as potential upside targets. This outlook benefits from the expected bullish break of price from the triangle.

On the flip side, a breakdown of the lower boundary of the evolving triangle negates the bullish outlook and opens the door towards the 35.97 support, with 34.77 and 32.95 forming the immediate targets to the south.