Lloyds Share Price Outlook in the Wake of BoE’s Dovish Tone

Lloyds share price closed Thursday’s trading session at a standstill after BoE’s monetary policy decision. Its total market capitalization came in at £33.06 billion.

Bank of England Verdict

The Bank of England (BoE) published its monetary policy decision for August on Thursday. Being one of the largest financial services companies in the United Kingdom, the BoE decision was key to Lloyds Banking Group.

According to the data published by the BoE, the monetary policy committee (MPC), decided to maintain the bank rate at 0.1%. With the resurgence of coronavirus cases alongside the Delta variant, the Bank of England is still cautious about the country’s economy.

The MPC voted to maintain the stock of sterling non-financial bond purchases at £20 billion. The BoE will also keep its target for the government bonds stock purchases at £875 billion. According to the committee, the current surge in inflation in the United Kingdom is likely to be transitory.

The BoE decision came a week after the company posted its earnings report. According to the data published on July 29, the company’s earnings for the second quarter beat analysts’ forecast. Its revenue, on the other hand, topped estimates boosting the Lloyds share price.

The company recently launched a new cashback credit card. The credit card will allow customers to earn cashback every time they spend. Analysts are optimistic about Lloyds share price.

Lloyds Share Price Outlook

Lloyds share price has formed what seems like an inverted head and shoulders pattern since early July.  It closed markets 1.47% higher at 46.580p on Friday. It hit an intraday bounce of 46.840p before pulling back.

According to the three-hour chart, it was trading above the 25 and 50-day exponential moving averages. A move below its intraday low of 45.70p might drag the prices to find support at 45.38p. On the flip side, a move past the resistance level at 47.32p might push the price to 50p.

LLOY Price Chart