BoE Chief Economist's Call for Rate Hike Boosts Pound

The British Pound has experienced a moderate recovery on Thursday, rising by roughly a third of a percent to trade near 1.3530 after the 50-day Exponential Moving Average (EMA) held its ground for the second consecutive session.

This bounce is considered a relief rally until the GBP/USD pair closes above 1.3550, which would signal a trend change.

The move higher can be attributed to an unexpected argument from the Bank of England's chief economist, who called for a prompt increase in interest rates from 3.75% to 4%, citing that he is uncomfortable with the wait-and-see stance of the majority.

This view was previously outvoted 6-3 in July, but it led to a sharp jump in the GBP/USD pair by approximately forty pips within an hour.

The next major event for the Pound will be the Governor's speech on Friday at 08:50 GMT, which may provide insight into the Bank of England's upcoming decision on interest rates.