GBP Bounces on Hike Argument, But Bias Remains Bearish

The British Pound has experienced a moderate recovery after a week of losses. GBP/USD is trading near 1.3530, up roughly one-third of a percent from earlier in the day.

This bounce can be attributed to the recent comments made by the Bank of England's chief economist. He argued that Bank Rate should rise promptly from 3.75% to 4%, which was met with skepticism as it contradicts the majority view, outvoted 6-3 in July.

However, the market has remained unchanged despite repeated arguments for a hike in interest rates. The Governor's speech later today will be closely watched as he explains his stance on monetary policy. Meanwhile, US nonfarm payrolls will also be released at 12:30 GMT, carrying a consensus of 56K jobs created.

A bearish bias remains intact while 1.3550 caps the market, and any rallies in this area are considered opportunities for selling. A daily close above 1.3550 would invalidate this view and potentially open up higher prices.