GBP/USD holds steady near mid-1.2300s, moves little post-UK PMIs

• GBP/USD seesawed between tepid gains/minor losses through the early European session.
• The pair moved little and remained confined in a range after disappointing UK PMI prints.

The GBP/USD pair held steady around the 1.2345-50 region and had a rather muted reaction to the latest UK macro data.

The pair seesawed between tepid gains/minor losses through the early European session and continued with its struggle for a firm intraday direction, rather unaffected by the disappointing release of flash UK PMI prints.

The flash version of the UK Manufacturing PMI plunged to 32.9 for April and the gauge for the services sector came in at 12.3, which further illustrated the extent of economic damage from the coronavirus pandemic.

The pair, however, moved little and also shrugged off some renewed buying around the US dollar, which remained well supported by its status as the global currency and a slight deterioration in the global risk sentiment.

Some cross-driven strength stemming from a leg down in the EUR/GBP, led by awful Eurozone PMIs, seemed to be the only factor lending some support to the British pound and helped limit the downside for the major.

Moving ahead, market participants now look forward to the US economic docket – highlighting the release of flash Manufacturing PMI and Initial Weekly Jobless Claims – in order to grab some short-term trading opportunities.

Technical levels to watch