FXstreet.com (Barcelona) - GBPUSD bounced circa 70 pips overnight following the re-election of Barack Obama as the 44th President of the United Stated of America.
The news, which broke close to 2am, came following a period of tight range bound trading between 1.5960-1.6000 for the few days previous and saw price move off its overnight low at 1.5968 to test resistance at the hourly 100MA at 1.6038. Due to the knock on effects surrounding US monetary policy, markets had chalked up an Obama victory to be a buy due to the expectation that he will stick with Fed Chairman Bernanke's unorthodox strategy in tackling the US economic recovery. If Romney were elected, Bernanke was expected to resign with immediate effect and a less Dovish successor be appointed. As we look towards the European open, spot is currently trading at 1.6026, just below the daily R2 resistance at 1.6027.
Calendar wise this morning sees Swiss CPI at 08:15 GMT, EU Retail Sales at 10:00 GMT, German Industrial Production at 11:00 GMT whilst the headline risk event is undoubtedly the Greek Parliaments Austerity Vote. The timing of which is ad hoc. Forex Ticket analysts are neutral on the pair and see spot ranging ahead today following the overnight excitement. They have highlighted 1.5995/1.5955 and 1.6040/1.6100 as upcoming levels of support and resistance. Elsewhere Asian stocks closed up alongside European futures and the majority of commodities.