Investing.com - The pound held steady against the U.S. dollar on Wednesday, after the release of upbeat U.K. service sector activity data, as investors remained cautious ahead of the U.K. Treasury's Autumn Forecast Statement due later in the day.
GBP/USD hit 1.5669 during European morning trade, the session high; the pair subsequently consolidated at 1.5642, up only 0.04%.
Cable was likely to find support at 1.5585, the low of December 1 and a 14-month low and resistance at 1.5765, the high of December 1.
In a report, market research group Markit said the U.K. services purchasing managers' index increased to 58.6 last month from a reading of 56.2 in October. Analysts had expected the index to rise to 56.6 in November.
The report came a day after data showed that the U.K. construction PMI declined to 59.4 in November from a reading of 61.4 in October, compared to expectations for a fall to 61.2.
Meanwhile, the dollar remained broadly supported as recent U.S. economic reports continued to fuel optimism over the strength of the country's recovery, adding to expectations for a rate hike by the Federal Reserve.
Sterling was higher against the euro, with EUR/GBP retreating 0.52% to 0.7879.
In the euro zone, Markit earlier reported that the services PMI fell to 51.1 in November from 51.3 the previous month. Analysts had expected the index to remain unchanged last month.
Germany's services PMI remained unchanged at 52.1 last month, in line with expectations.
Later in the day, the U.S. was to release the ADP report on private sector job creation, while the ISM was to publish a report on U.S. service sector activity.