Barclays stock: lending standard relaxation and US card strength spark a 1.59% drop

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Barclays slides 1.59% to GBX 481.20

Highlights

Barclays has reduced mortgage rates and eased lending standards alongside other major UK banks, potentially impacting its net interest margins.
The bank's US card division remains crucial, contributing approximately 11% of group profits and supporting overall earnings.
Barclays will release its full-year results and announce new financial and operational targets through 2028 on February 10.

Lending policy shifts as Barclays eyes profit balance and results

Barclays has joined other major UK banks in reducing mortgage rates and relaxing lending standards to increase consumer demand, which may impact its net interest margins. The bank's US card division continues to be a significant earnings contributor, providing about 11% of group profits. Barclays is also set to release its full-year results on February 10, including new financial and operational targets through 2028.

Technical support holds as momentum faces overbought pressures

The Ichimoku Kijun at GBX 464.25 serves as dynamic support, while immediate resistance stands near the GBX 500 mark. Momentum indicators on the daily timeframe, including the MACD and ADX, remain firm and signal strength, although both the RSI and Commodity Channel Index point to overbought conditions. The Stochastic RSI is neutral, and Bull/Bear Power reflects ongoing buyer dominance despite some intraday divergences and renewed selling pressure after the open. Price action is currently near the midpoint of today's range, with moderate volatility.

Upside favored as volatility band narrows ahead of key resistance

Over the next five trading days, BARC is likely to fluctuate within a typical volatility band between GBX 475 and GBX 500. There is a high probability (over 80%) of further gains based on strong Buy signals from multiple weekly indicators, making a pullback less likely. The baseline expectation is sideways trading between GBX 475 and GBX 490. A break above GBX 490 – 500 could drive new highs, while sustained weakness below the Ichimoku Kijun may test GBX 470 as support.

Viktoras Karapetjanc, analyst at Traders Union, highlights that Barclays remains supported by upbeat technical trends and macro tailwinds. He sees mortgage repricing and steady US card profits as positives for medium-term momentum. The analyst believes upcoming results could reinforce bullish sentiment if new targets impress. Sideways trade between GBX 475 and GBX 490 is most likely in the near term unless buyers break above GBX 500. “I see a strong case for Barclays to outperform peers as long as sector sentiment and key supports are sustained.”

Previously it was reported that Barclays PLC is maintaining firm upward momentum, trading well above its short-, medium-, and long-term moving averages, with bullish confirmation from MACD, ADX, and a supportive RSI. The stock is consolidating near local highs with dynamic support at the Ichimoku Kijun and resistance approaching GBX 495.00 and the psychological GBX 500 level, while overbought signals temper but do not negate the prevailing positive bias.

Source of Data: BARC Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.