G'day Apples,
There will be a copper or nylon pipe running to the underside bleed valve on the pressure switch, the other end of this line connects to the non return valve on the air receiver.
You will find that your non return valve is shot, normally a small disc shaped neoprene valve inside the NRV.
What's happening is the bleed valve on the pressure switch is doing it's job, it's releasing the air being presented to it. The problem is if the valve in the NRV is shot, it's allowing air from the receiver to run back out to the bleed valve. The bleed valve is designed to release the air trapped above the NRV, between the cylinder head and NRV.
Pull out the NRV, I bet ya it's stuffed or has something jamming the disc valve inside.
Regards,
Barrabart.