* Sterling up vs dlr, euro, rebounding after recent weakness * But gains tentative as traders await UK services PMI data * U.S. payrolls seen key for currency market direction LONDON, Sept 3 (Reuters) - Sterling rose against the dollar and the euro on Friday, but trade was cautious ahead of a survey which is expected to show further weakening in UK services sector activity and could put the pound back under pressure. Sterling recovered a little after falls the previous day following weak UK housing and construction data, which added to the view the economic improvement seen in the first half of the year may not be sustainable. Gains were tentative, however, with traders wary that Friday's numbers may add to a recent string of weak UK data. Similarly, a rise in risk aversion if U.S. payrolls figures, due at 1230 GMT, come in below forecast could also hit sterling. The headline UK services PMI reading, due at 0828 GMT, is expected to fall to 52.9 in August from 53.1 in July, with analysts expecting the sector was hit by worries about the knock-on impact of planned public spending cuts. ECONGB "Sterling has had a difficult week and it would not be surprising for it to rebound a little, but I would be very cautious about sterling," said Kenneth Broux, market analyst at Lloyds. "If the data today is weak then the market could start talking about the possibility of more quantitative easing in the UK, which would be negative for sterling." At 0748 GMT, sterling was up 0.3 percent against the dollar at $1.5441 GBP=D4. Traders reported options expiries due on Friday at $1.5400 and $1.5500, which they said may exert influence on the spot price. Sterling was just above its 200-day moving average, currently at $1.5423. Technical analysts highlighted key support for the pound at $1.5322, the 38.2 percent retracement of the May to August rally, just below Tuesday's five-week low of $1.5327. The euro fell 0.2 percent to 83.05 pence EURGBP=D4. Losses were limited, however, with traders reporting demand for the single currency at 83.00 pence. The euro hit a three-week high of 83.47 on Thursday. "Euro/sterling trades above 83.00 pence and a sustained hold opens a test of 83.85/90," RBC analysts said in a note. Currency markets are expected to stay rangebound ahead of key U.S. jobs data for August, however, with economists expecting a decline of 100,000 jobs overall, and a rise of 41,000 private-sector jobs. [ID:nN31235915] Weak data would exacerbate concerns about a softening U.S. economy, potentially sparking renewed risk aversion across financial markets.

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