Many traders have a favourite indicator or signal. Others try to remain agnostic, choosing the most appropriate signal for market conditions. However, many traders agree that several indicators pointing in the same direction is a stronger trade signal.
A potential triangle break, through the “big figure” of 170.00, would likely see the MACD cross as well. Looking for a swing on this signal cluster, traders may consider selling at 169.85, with a stop above the triangle top around 173.00, and a target just above support around 163.90. Shorter term traders could look at selling at the same level, with a tighter stop just above 170.00, seeking to trail a profitable trade down.
A factor in considering this trade is that it is against the consensus fundamentals of a strengthening Pound and a weakening Yen. While putting on the trade is counter intuitive, should technical selling kick in there is potential for an exaggerated move.
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