In U.S. trading on Wednesday, GBP/USD was trading at 1.5399, up 0.56%, up from a session low of 1.5292 and off from a high of 1.5410.
The pair was likely to find support at 1.5008, the low from May 29, and resistance at 1.5592, high from May 8.
The Markit U.K. service-sector purchasing managers’ index rose to 54.9 in May from 52.9 in April, outstripping expectations for a reading of 53.0.
The data reinforced already growing expectations that the Bank of England will keep monetary policy unchanged at its monthly meeting on Thursday, especially in wake of better-than-expected U.K. manufacturing and construction data earlier in the week, which gave Cable support.
The dollar, meanwhile, came under pressure after softer-than-expected jobs data hit the wire.
Payroll processor ADP reported earlier that non-farm private payrolls rose by 135,000 in May, well below expectations for an increase of 165,000, which weakened the dollar.
The previous month’s figure was revised down to a gain of 113,000 from a previously reported increase of 119,000.
Elsewhere, the Institute of Supply Management said its U.S. non-manufacturing purchasing manager's index rose to 53.7 in May from 53.1 in April.
Analysts had expected the index to rise to 53.5, which gave the greenback some support.
In a separate report, the Commerce Department said U.S. factory orders rose 1% in April, missing expectations for an increase of 1.6%, which fueled talk the Federal Reserve may be more inclined to keep monetary policy loose.
The pound, meanwhile, was up against the euro and down against the yen, with EUR/GBP trading down 0.53% at 0.8496 and GBP/JPY down 0.34% at 152.72.
On Thursday, all eyes will be on the Bank of England, which will announce its decision on benchmark interest rate.
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