* Euro below 84 pence, lowest since Feb 22 * 83.33 level could be key, equal to 1.20 euros in GBP/EUR * Sterling trade-weighted index matches highest since March * UK jobs data better than forecast By Jessica Mortimer LONDON, Dec 14 (Reuters) - Sterling rose to its highest in more than nine months against the euro on Wednesday as worries about the lack of a resolution to the euro zone debt crisis and the risk of sovereign downgrades in the bloc weighed on the single currency. Sterling remained driven by negative sentiment towards the euro, leaving the UK currency vulnerable versus the safe-haven dollar. Very thin liquidity was exacerbating moves, traders said. The pound showed little reaction to data showing the UK jobless claimant count rose less than expected last month. The euro fell as low as 83.89 pence, its weakest since Feb 22 and below a reported options barrier at 84.00 pence that traders said had previously provided strong support. The euro's low roughly matched support from a trendline drawn from lows hit in late 2008. Strong demand for euros was expected from corporates ahead of 83.33 pence, equivalent to the 1.20 euro level in sterling/euro. "Sterling lacks the momentum to push higher on its own and much of the strength in the pound is down to euro weakness," said Alex Lawson, senior dealer at Moneycorp. "There is a lot of congestion up to the 1.20 level in sterling/euro, or 83.33 in euro/sterling. This has now become the target and especially in such thin trade we could get there". Apart from a brief foray above 1.20 euros in early January, the pound has not been above this level since September 2010. Lawson said sterling may also gain in the coming weeks as UK corporates repatriate ahead of the year end. Gains against the euro pushed sterling's trade-weighted index to 81.0, matching its highest level since March. Against the dollar, however, the pound was steady at $1.5482, close to Tuesday's low of $1.5450. Below there could see it test $1.5423, which would mark a two-month low. "Sterling/dollar should break below the $1.5425 support level, which is in sight, and dip back to the early October low of $1.5270, or even to the tentative support line, which comes at $1.5090 this week," technical analysts at Societe Generale said in a note to clients. MORE GAINS VS EURO? The euro was pressured as Italy was forced to accept hefty borrowing costs at a sale of five-year debt, while markets braced for possible ratings downgrades of euro zone countries after last week's EU summit offered no hope of an immediate resolution to the debt crisis. Analysts say sterling's gains reflect euro zone debt worries rather than a thumbs-up to British Prime Minister David Cameron's veto of proposed European Union treaty changes, which could be negative for the pound in the longer term. They expect more gains for sterling versus the euro over the coming weeks as investors opt for the relative safety of UK government bonds over euro zone assets. "It is hard to be too negative on sterling because euro/sterling is historically quite high," said Adrian Schmidt, currency strategist at Lloyds. The pound is also likely to garner support if speculation about the Bank of England opting for further monetary easing in the first quarter of next year decreases. BoE chief economist Spencer Dale put a question mark over his support for any future quantitative easing to boost the economy on Tuesday when he warned UK inflation may not fall as fast as the BoE forecasts next year. (Editing by John Stonestreet)

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