Sterling edges higher on survey data

LONDON, Jan 4 (Reuters): Sterling edged up on Thursday after surveys showed Britain's dominant services sector rebounded strongly last month although investors remained cautious of pushing the British currency higher due to a lack of broad catalysts.

The pound also benefited from broad-based dollar weakness and a general rebound in risk sentiment which has lifted sentiment towards the British currency, but persistent structural factors, such as a widening current account deficit, kept investors wary.

"Looking at positioning data, inflation and a big current account deficit, sterling looks to be more of a sell than a buy at these levels," said Hans Redeker, global head of currency strategy at Morgan Stanley based in London.

Sterling rose a quarter of a per cent higher at $1.3545 and remained within striking distance of a four month high of $1.3659 hit in late September.

Long bets on sterling are hovering near their biggest levels in more than three years.