GBP/USD keeps the red near mid-1.2300s, moves little post-UK PMI

• GBP/USD failed to capitalize on the overnight strong rebound of around 130 pips.
• Resurgent USD demand exerted some pressure amid concerns over coronavirus.

The GBP/USD pair maintained its offered tone near session lows, around mid-1.2300s, and had a rather muted reaction to the UK macro data.

The pair failed to capitalize on the previous day's goodish intraday bounce of around 130 pips – back closer to the key 1.2500 psychological mark, or two-week tops – and met with some fresh supply on Wednesday amid resurgent US dollar demand.

As investors looked past the Fed's overnight move to allow foreign central banks to exchange their holdings of the US Treasuries for overnight dollar loans, the greenback managed to regain traction amid a fresh wave of the global risk-aversion trade.

Despite efforts by major central banks and governments across the world, concerns over the economic fallout from the coronavirus pandemic continued underpinning the USD's demand as the global reserve currency and exerted some pressure on the major.

Meanwhile, Wednesday's release of the final UK Manufacturing PMI, which was revised down to 47.8 in March versus 48.0 estimates earlier, did little to meaningful impetus, with the USD price dynamics turning out to be an exclusive driver of the pair's momentum on Wednesday.

Later during the early North-American session, the release of the US ISM Manufacturing PMI – though is unlikely to be a game-changer – might influence the USD and assist traders to grab some short-term opportunities.

Technical levels to watch