The best indicators to use with rectangles are oscillators that provide overbought and oversold indications.
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Update: It is end of day April 2, 2014. I would put a buy stop order right above 1.2659 to get long and buy. Then, put a stop under 1.2542.
I dont catch falling knives, which it would be now (In line with sensible trading strategies.)
For the record: I do not claim to know future direction, future price, or future movements of this Fx.