Investing.com - The pound touched session lows against the dollar on Monday after data showed that activity in the U.K. service sector slowed to a six month low in December.
GBP/USD fell to lows of 1.6338, the weakest since December 24 and was last down 0.42% to 1.6349.
Cable was likely to find support at 1.6259, the low of December 18 and resistance at 1.6415, the session high.
Markit said the Markit/CIPS Services Purchasing Managers Index declined to a six month low of 58.8 in December from 60.0 in November. Analysts had expected an unchanged reading.
Despite the slowdown the index still remained well above the 50.0 level that indicates expansion. The report said confidence rose and the economy still looks likely to have expanded strongly in the fourth quarter.
"More strong growth looks likely as we move into 2014," Markit's chief economist, Chris Williamson said. "It is perhaps inevitable, however, that we may see the rate of growth slow compared with the unusually strong pace seen in recent months."
Elsewhere, the euro rose to session highs against sterling, with EUR/GBP advancing 0.55% to 0.8320.
In the euro zone, data released on Monday showed that the final reading of the bloc’s services PMI came in at 51.0 in December, unchanged from the preliminary estimate and down slightly from 51.2 in November.
GBP/USD fell to lows of 1.6338, the weakest since December 24 and was last down 0.42% to 1.6349.
Cable was likely to find support at 1.6259, the low of December 18 and resistance at 1.6415, the session high.
Markit said the Markit/CIPS Services Purchasing Managers Index declined to a six month low of 58.8 in December from 60.0 in November. Analysts had expected an unchanged reading.
Despite the slowdown the index still remained well above the 50.0 level that indicates expansion. The report said confidence rose and the economy still looks likely to have expanded strongly in the fourth quarter.
"More strong growth looks likely as we move into 2014," Markit's chief economist, Chris Williamson said. "It is perhaps inevitable, however, that we may see the rate of growth slow compared with the unusually strong pace seen in recent months."
Elsewhere, the euro rose to session highs against sterling, with EUR/GBP advancing 0.55% to 0.8320.
In the euro zone, data released on Monday showed that the final reading of the bloc’s services PMI came in at 51.0 in December, unchanged from the preliminary estimate and down slightly from 51.2 in November.