Investing.com - The pound edged lower against the U.S. dollar on Wednesday, after data showed that the U.K. service sector expanded at a slower pace than expected last month.
GBP/USD hit 1.6366 during European morning trade, the pair's lowest since November 29; the pair subsequently consolidated at 1.6359, slipping 0.20%.
Cable was likely to find support at 1.6198, the low of November 27 and resistance at 1.6442, the high of December 2 and 27-month high.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 60.0 in November from a reading of 62.5 in October, which was the strongest since May 1997.
Analysts had expected the index to decline to 62.0 last month.
But sterling remained supported after data on Tuesday showed that the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007.
The upbeat data fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
Meanwhile, demand for the dollar continued to be underpinned after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
Sterling was little changed against the euro, with EUR/GBP inching up 0.04% to 0.8294.
In the euro zone, Markit said that its final services PMI inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
The report came after data showed that Germany's services PMI rose to 55.7 in November, up from a preliminary reading of 54.5 and compared to 52.9 in October.
GBP/USD hit 1.6366 during European morning trade, the pair's lowest since November 29; the pair subsequently consolidated at 1.6359, slipping 0.20%.
Cable was likely to find support at 1.6198, the low of November 27 and resistance at 1.6442, the high of December 2 and 27-month high.
In a report, market research group Markit said the seasonally adjusted Markit/CIPS Services Purchasing Managers Index fell to 60.0 in November from a reading of 62.5 in October, which was the strongest since May 1997.
Analysts had expected the index to decline to 62.0 last month.
But sterling remained supported after data on Tuesday showed that the U.K. construction purchasing managers' index rose to 62.6 in November, the highest level since August 2007.
The upbeat data fuelled expectations that the Bank of England may tighten monetary policy ahead of other central banks.
Meanwhile, demand for the dollar continued to be underpinned after the Institute for Supply Management said Monday that manufacturing activity in the U.S. expanded at the fastest rate since April 2011 in November, fuelling optimism over the economic recovery.
Sterling was little changed against the euro, with EUR/GBP inching up 0.04% to 0.8294.
In the euro zone, Markit said that its final services PMI inched up to 51.2 in November, up from a preliminary reading of 50.9 and compared to 51.6 in October.
The report came after data showed that Germany's services PMI rose to 55.7 in November, up from a preliminary reading of 54.5 and compared to 52.9 in October.