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UPDATE 1-Sterling slips as investors book profits from recent run

* Pound heads towards $1.30 after breaching $1.31 this week

* PMI services survey signals stagnating economy

* BoE gave hawkish hone, markets doubt any hike is imminent

* Graphic: World FX rates in 2019

* Graphic: Trade-weighted sterling since Brexit vote (Updates after PMI data release)

LONDON, May 3 (Reuters) - The British pound edged back from two-week highs on Friday as investors booked profits and doubted the Bank of England would raise interest rates while Brexit remained unresolved.

A survey that showed service business barely returned to growth in April had little effect. The IHS Markit/CIPS UK Services Purchasing Managers' Index rose to 50.4 in April from 48.9 in March, just above the 50 reading that separates growth and decline.

The reading, which was in line with forecasts, suggested the broader economy was stagnating,

Sterling was also little moved by a relatively hawkish message from the Bank of England on Thursday. Investors remained focussed on when, how and on what terms Britain will leave the European Union.

The pound fell 0.1 percent to the day's low of $1.3009 by 0903 GMT after rising above $1.31 earlier in the week. It was down against the euro at 85.80 pence.

The BoE said on Thursday that markets should expect rates to rise more in the next few years than they currently assume, if the economy grows as policymakers expect and inflation is brought back to target.

Few analysts are convinced the bank will act before Brexit uncertainty is lifted, however.

"We believe that persistent Brexit uncertainty combined with concerns over slowing growth overseas will deter the BoE from delivering a more immediate rate hike. We remain sceptical that cross party Brexit talks between the government and Labour will prove successful," MUFG analysts wrote. (Reporting by Tommy Wilke, editing by Larry King)