GBP/USD Slides Below 1.3700 as Dollar Strengthens; Bitcoin Endures $800M of Liquidations

Market snapshot

The US dollar extended gains for a second day after President Trump nominated Kevin Warsh to the Federal Reserve and US manufacturing/ISM prints surprised to the upside. The dollar's resurgence pressured GBP/USD—which cleared the 1.3700 support level—and coincided with sharp crypto market stress: nearly $800M in liquidations left Bitcoin trading in the mid‑$70k range after an intraday slip below $75,000.

What drove the move

Two market forces are central to today's moves: a reassessment of Fed policy following the Warsh nomination and stronger US manufacturing data that support a firmer USD; and a wave of crypto liquidations that amplified Bitcoin's intraday volatility. The stronger USD also helped push precious metals and other risk assets lower, adding to pressure on GBP and crypto correlations.

GBP/USD technical outlook and trade implications

Price action: GBP/USD fell roughly 0.17% and cleared the 1.3700 support zone. Short‑term consolidation is likely in the 1.3600–1.3700 band with RSI drifting toward neutral.

Key levels:

• Immediate resistance: 1.3700 (reclaiming this level would open 1.3750 then 1.3800).
• Immediate support: 1.3600; failure here could accelerate a move toward lower structural support around 1.3500.

Risks and catalysts: a divided Bank of England vote or communications that avoid explicit support for jobs could keep sterling under pressure and raise volatility ahead of the BoE rate decision (market pricing currently expects Bank Rate to be held at 3.75%). Conversely, stronger UK PMI prints or dovish signals fading could enable a technical reversal.

Trading notes: for traders focused on forex trading, consider disciplined trend-following short exposures below 1.3700 with defined stops, or buy‑on‑dip strategies if price defends 1.3600 with confirmations on volume/RSI. Execution and rapid signal follow‑through are essential—many retail traders use algorithmic systems to manage intraday execution and risk; a reliable Forex Trading Bot can help automate entries and exits around these key levels.

Bitcoin: liquidation‑led volatility and tactical setups

Price action: Bitcoin traded around $76k–$77k after briefly slipping below $75k and touching a low near $74,476. The near‑term environment has been dominated by forced selling—nearly $800M in liquidations over 24 hours—which magnified downside moves and intraday volatility.

Risks: continued forced selling could push BTC below prior support near $74.5k, while weakening institutional demand raises the likelihood of extended choppy conditions. Altcoins with scheduled unlocks (e.g., PI) create additional idiosyncratic downside risks and potential contagion to broader crypto sentiment.

Opportunities: tactical dip‑buy setups exist if BTC finds stable support between $74k–$75k and liquidation pressure subsides. Traders who prefer managed exposure can use hedged or size‑controlled automated strategies to avoid emotional reaction at scale; consider exploring a Bitcoin Trading Bot or a Binance Trading Bot for 24/7 order management and disciplined position sizing.

Key Bitcoin levels to watch

• Support cluster: $74,000–$75,000
• Immediate resistance: $77,500–$78,500
• Risk trigger: a decisive close below $74,000 could target lower structural support zones.

Tactical trade ideas and risk management

1) Momentum / trend trades: Short USD‑sensitive FX pairs on confirmed dollar strength; use tight stops and define time‑in‑trade objectives. For BTC, trend traders should wait for liquidation-driven volatility to subside and for clear continuation signals on volume and volatility indicators.

2) Mean reversion: On oversold signals and de‑leveraging in crypto, scale into positions near known support with protective stops—this is a higher‑risk, higher‑reward approach given current liquidation risk.

3) Options and hedges: Consider using options or inverse instruments to hedge directional exposure around key events (BoE decision, US data flow) rather than relying on market timing alone.

Automation and tools: Given 24/7 crypto markets and fast FX repricings, many traders implement automated trading frameworks to enforce rules and reduce behavioural errors. A Trade Assistant that monitors levels, applies stop rules and rebalances positions can materially improve execution—see the Trade Assistant Bot for features that support rule‑based automated trading and real‑time alerts.

What to watch next

• BoE communications and any split in the MPC vote that could affect sterling volatility.
• US datapoints (ISM/manufacturing follow‑ups, payrolls) that reinforce or weaken the new Fed narrative around policy direction.
• Crypto liquidation flows, open interest trends on major derivatives venues, and scheduled token unlocks (e.g., PI) that can create sudden supply shocks.

Conclusion

The market is reacting to a renewed USD repricing driven by Fed leadership headlines and stronger US manufacturing, which pushed GBP/USD under 1.3700 while crypto delivered sharp liquidation‑driven volatility for Bitcoin. Retail traders should prioritize risk management, watch key technical levels (1.3700/1.3600 for GBP/USD; $74k–$75k for BTC), and consider disciplined automated approaches to execution and position sizing.

If you trade forex or crypto, using an AI‑driven assistant can help execute rules consistently and monitor markets around the clock. Learn more about algorithmic tools for both asset classes by exploring our Forex Trading Bot and Bitcoin Trading Bot, or try the Trade Assistant Bot to start automating your strategies. Play smart: try an AI trading bot on PlayOnBit today to test automated trading and improve execution under fast‑moving conditions.