* Sterling outlook clouded, QE increase expected next week * BoE's Posen says inflation looks set to fall * UK services PMI data due 0928 GMT By Nia Williams LONDON, Feb 3 (Reuters) - Sterling was steady within sight of a two-and-a-half month high against the dollar on Friday, with expectations of decent services sector data later in the session offset by bets the Bank of England will announce further monetary easing next week. Economists in a Reuters poll expect the PMI survey of purchasing managers for January to show a positive reading of 53.5, slightly below the previous month's 54.0, but still above the 50 level that divides expansion from contraction. Figures earlier in the week also pointed to growth in the construction and manufacturing sectors, but analysts said concerns about the UK economy were likely to persist after GDP contracted in the final quarter of 2011. The Bank of England is still widely expected to announce an increase in its asset purchase programme next week to boost the faltering economy, keeping the pound's gains in check. Sterling was last up 0.1 percent against the dollar at $1.5819, hovering within range of its Feb. 1 peak of $1.5884. Strong topside resistance was seen around $1.5952, the 200-day moving average that has not been breached since late October. "Sterling has been benefitting from a weak dollar environment, but there has been mixed sentiment and it's a bit too early to start drawing positive conclusions on how first quarter GDP is going to go," said Simon Smith, chief economist at FxPro. "As we go into February we are going to get more speculation on the possibility of more quantitative easing from the Bank. That will be a mild dampener on sterling in the early part of the month." Bank of England policymaker Adam Posen said in an interview on Thursday that the central bank may inject more stimulus into the economy as inflation looks set to fall as forecast. Adding to the clouded outlook for the pound, a report from a leading British think-tank said the UK economy has entered a mild recession and will shrink in 2012. The euro dipped 0.1 percent against the pound to 83.06 pence, roughly in the middle of this year's 82.22-84.09 range. Investors were cautious of buying the single currency as negotiations over a Greek debt swap deal - crucial if the country is to avoid a messy default - dragged on and Portuguese debt yields remained at extreme levels. Sterling has been supported against the euro in recent months by investors seeking safe haven assets switching out of euro zone government into the UK gilt market. Morgan Stanley strategists said they continued to expect the pound to be under pressure against the dollar but also now believed it should prove stronger against the euro. "Sterling acts as a relative safe haven from developments in the euro zone, especially given that the UK continues to benefit from stable AAA status," they said in a note to clients. The U.S. bank also revised its year-end euro/sterling forecast to 76 pence from 85 pence.

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