The pound was higher against its major counterparts in the early European session on Tuesday, as a data showed that U.K. service sector expanded more than expected in February. Survey data from IHS Markit showed that the headline seasonally adjusted U.K. services PMI rose to 51.3 in February from 50.1 in January. Economists had forecast a score of 50.0.

A reading above 50 suggests expansion in activity.

The data indicated that the economy is on course to grow by about 0.1 percent in the first quarter.

The currency was underpinned by risk appetite as China unveiled plans to boost spending, increase foreign firms' access to its markets, and cut billions of dollars in taxes.

Beijing also said it would continue to carry out a prudent monetary policy and use reserve requirements as policy tools.

Trade talks between the U.S. and China and Brexit talks also remained on the radar of investors.

The currency traded mixed against its major counterparts in the Asian session. While it dropped against the franc and the greenback, it held steady against the euro and the yen.

The pound appreciated to 1.3198 against the greenback, from a weekly low of 1.3150 seen at 11:00 pm ET. The pound is likely to find resistance around the 1.345 level, if it rises further.

Recovering from an early low of 147.16 against the yen, the pound strengthened to 147.79. The pound is seen finding resistance around the 150.00 level.

The latest survey from Nikkei showed that Japan services sector continued to expand in February, and at a faster rate, with a services PMI score of 52.3.

That's up from 51.6 in January and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Having dropped to a 4-day low of 0.8613 against the euro at 11:00 pm ET, the pound reversed direction and advanced to 0.8585. Next likely resistance for the pound is seen around the 0.84 level.

The U.K. currency edged up to 1.3210 against the Swiss franc, after falling to 1.3149 at 5:00 pm ET. On the upside, 1.33 is possibly seen as the next resistance level for the pound.

Looking ahead, U.S. new home sales for December, ISM services PMI for February and monthly budget statement for January will be out in the New York session.

Bank of England Governor Mark Carney is set to testify on Brexit, inflation, and the economy before the House of Lords Economic Affairs Committee in London at 10:35 am ET.

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