* Pound rises versus euro which slips on Greek bailout uncertainty * But sterling slips versus dollar amid declining risk sentiment * UK PMIs underpin sterling but BoE still expected to announce more QE this week By Neal Armstrong LONDON, Feb 6 (Reuters) - Sterling rose against the euro on Monday as the common currency suffered from fresh uncertainty surrounding prospects for a Greek bailout, but the pound slipped against the dollar as concerns over Greece weighed on risk sentiment and lent support to the greenback. A recent run of positive UK economic data gave some support to sterling, though dealers said it was unlikely to dissuade the Bank of England from announcing an increase in its asset purchase programme on Thursday. In the meantime events in the euro zone continued to drive currency movements. Greece's coalition members must tell the European Union on Monday whether they accept the painful terms of a new bailout worth 130 billion euros in order to avoid a disorderly default, with the major political parties still thought to be deliberating over key issues. The euro was down around 0.4 percent on the day at 82.77 pence, near last week's low of 82.75. Traders said support was at this year's low of 82.22 hit in January. A break through there would take the pound to its highest since September 2010. "The principal focus is on the situation in Greece which is dominating traders' thoughts. Euro/sterling is back below 83 pence and should head lower if the Greek situation deteriorates," said Michael Derks, chief strategist at FXPro. Sterling was down around 0.4 percent versus the dollar at $1.5750, below a 10-week high of $1.5884 hit last week. The pound has benefited against the dollar since the middle of January from a rally in equities which has boosted riskier currencies, together with data showing the UK economy may be turning the corner. Technical analysts said the 200-day moving average at $1.5965 would need to be broken for fresh upside potential. A strong run of closely watched Purchasing Managers' Index (PMI) data last week suggested Britain could dodge recession early this year. But the Bank of England is expected to remain cautious and adopt another round of quantitative easing when it meets this week, with consensus among economists polled by Reuters that a fresh 50 billion pounds will be pumped into the economy. "Some of the recent data might elicit a bit more caution from members of the MPC but there is still a persuasive case for additional action," said Derks, who thought more QE was priced into sterling but said a lower amount than 50 billion would give the pound a knee-jerk boost. Fiscal cuts from the British coalition government have placed the emphasis on the BoE to support economic growth, with markets expecting interest rates to remain at record lows of 0.5 percent for the foreseeable future. Should the BoE surprise most in the market by announcing a larger-than-expected QE total this week, sterling is likely to come under pressure. Speculative data shows short positions are still in the ascendancy in the UK currency. "GBP would come under distinct pressure if the BoE in fact did institute 75 billion pounds or more in new quantitative easing," said Citi analysts in a note, whose economists expect 75 to 100 billion pounds of additional action. British house prices rose by 0.6 percent in January, almost completely reversing the previous month's decline, data from mortgage lender Halifax showed on Monday. House prices fell by -1.8 percent in the three months to January compared with a year ago, taking the average price of a home to 160,907 pounds. (Editing by Stephen Nisbet)

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