Barclays share price opened trading on the lower side on Thursday, with investors cautious following the latest uncertainty around US trade tariff negotiations. The stock was down by 1% and traded at GBX 290 at the time of writing, reversing from the uptrend registered in the previous two sessions.
Headwinds Could Potentially Strengthen
The bank is scheduled to release its quarterly earnings results on Wednesday, April 30 and that will inject fresh impetus into its stock price. Barclays (LSE: BARC) will likely be under pressure to extend its trend of forecast-beating earnings. However, the first quarter of the year has been nothing like the last four quarters, as the Donald Trump presidency has disrupted the market significantly.
In addition, Trump’s threat to reintroduce the reciprocal tariffs suspended a week ago could limit Barclays share price upside in the period leading up to the earnings releaser. The US President stated on Wednesday that he could reintroduce the high tariffs in the next two-to-three weeks, going against a previous 90-day timeframe.
The uncertainty created by the US trade policy shifts could have a substantial impact on Barclays’ investment banking income. Fewer companies are likely to pursue mergers and acquisitions in the current high-risk environment. That will likely be reflected in the bank’s investment banking fees income in the Q2.
Furthermore, the Bank of England will almost certainly go for steeper interest rate cuts to counter the impact of trade tariffs. That, too, could eat into Barclays’ earnings by reducing net interest income margin.
Barclays Share Price New
The momentum on Barclays share price favours the downside to continue if resistance persists at GBX 292. Initial support will likely be at GBX 285, but an extended control by the sellers could send the action lower to test GBX 280.
Conversely, the momentum on Barclays share price could shift to the upside if it breaks above GBX 292. That will likely see the bulls encounter the first resistance at GBX 296. Breaking above that level will invalidate the downside narrative and the resulting momentum could potentially extend gains to test GBX 300.
The post Barclays Share Price Prediction: GBX 300 In Sight, But Headwinds Mount appeared first in UK on InvestingCube.