BRUSSELS (Alliance News) - The pound climbed against its major rivals in European deals on Wednesday, following a data showing that UK service sector expanded more than expected in January led by acceleration in new business expansion. The Markit/Chartered Institute of Purchasing & Supply Purchasing Managers' Index rose to 57.2 in January from 55.8 in December. The score was forecast to rise to 56.3. Growth has now been recorded for 25 months in succession. New business received by UK service sector companies increased at a marked and accelerated pace in January. Backlogs increased consecutively for 22 months, and some respondents blamed a lack of staff at their units as a reason for further backlog growth. However, the pound's gains were limited due to weakness in European stocks. Traders became cautious as oil prices resumed their decline and as Greek leaders started talks with the European Central Bank regarding its bailout. The ECB is resisting a main element of a bridge financing plan proposed by Greek government. The deadlock potentially leaves Greece with no source of outside funding when its international bailout expires at the end of the month. Traders focus on the Bank of England's interest rate decision on Thursday. The interest rate is expected to keep at a record low of 0.5% amid signs of slowdown in economic growth. The bank is not likely to increase its bank rate throughout this year. The pound strengthened to a weekly high of 1.5211 against the greenback, after having fallen to 1.5138 at 6:45 pm ET. The next possible resistance for the pound is seen around the 1.55 zone. Extending early rally, the pound firmed to 1.4081 against the Swiss franc, its highest since January 15. If the pound-franc pair extends rally, 1.42 is likely seen as its next resistance level. The pound reversed from an early low of 0.7573 against the euro and edged up to 0.7533. The pound is seen finding resistance around the 0.74 mark. Data from the Eurostat showed that the Eurozone private sector activity expanded in January at the fastest pace since July. The final composite output index rose to 52.6 in January from 51.4 in December. It was also above the flash reading of 52.2. The pound was trading higher at 178.62 against the yen, not far from early 6-day high of 178.81. Continuation of the pound's uptrend may take it to a resistance around the 180.00 area. Looking ahead, US ADP private sector employment data, Markit's composite and services PMIs and ISM Non-Manufacturing composite PMI - all for January are scheduled for release in the New York session. At 10:00 am ET, US Federal Reserve Governor Jerome Powell will deliver opening remarks at Dallas Fed conference on growth and regulatory paperwork reduction. Additionally, US Federal Reserve Bank of Cleveland President Loretta Mester will deliver a speech on the economy before the Ohio Bankers League annual economic summit in Columbus at 12:45 am ET.

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