Break & Retest, Price Action, Fibonacci Retracement Strategy

GBP/USD break-and-retest rules: breakout past support/resistance, retest into the 50-61.8% Fib zone; stop beyond the retest swing, 2R take profit.

Published · Updated · Methodology: Price Action

Part of: Fibonacci Trading

  • Methodology: Price Action
  • Content type: strategy
  • Timeframes: Not explicitly specified for trading, but examples shown on lower timeframes for day trading
  • Markets: GBPUSD, Forex

Indicators used

  • Fibonacci Retracement
  • Price Action

Source video

Decoded from: Break & Retest Trading Strategy for GBPUSD | Day Trading Forex with Price Action by Mindfully Trading — watch the original

Key timestamps:

  • 0:00 - Intro
  • 1:54 - The most important step – Bias
  • 2:39 - Step 2 Adding indicator
  • 3:01 - Step 3 Plotting market structure
  • 5:20 - Step 4 Fibonacci retracement
  • 6:28 - Step 5 Trade Execution
  • 6:38 - Entry rule: "Wait for price to break above a key level of resistance and then retest that level as support."
  • 7:01 - Stop loss rule: "Place your stop loss just below the swing low of the retest candle."
  • 7:22 - Take profit rule: "Target a 1:2 risk to reward ratio, or the next key level of resistance."
  • 10:42 - Losing trade recap

Strategy overview

Break-and-retest is the price-action pattern where a level gives way and price returns to it before continuing — and the interesting part of this entry is that Fibonacci arrives fifth in a five-step sequence, not first. "Break & Retest Trading Strategy for GBPUSD | Day Trading Forex with Price Action" from Mindfully Trading opens by naming bias "the most important step" and spends its first two minutes there, before any indicator is on the chart. The retracement grid enters only at 5:20, after market structure has already been plotted — so Fibonacci is not the thing that finds the trade here, it is the thing that prices the pullback once structure has already located it.

That ordering also explains the pair. GBPUSD is quoted as the working instrument throughout rather than left generic, and the walkthrough's examples sit on lower timeframes for day trading, though no single trading timeframe is committed to as the strategy's home. The 50% and 61.8% levels are the ones the video treats as key — the middle-to-deep half of the retracement range, which is the conventional read for a break-and-retest continuation rather than an early-entry approach.

Worth noting what the chapter list implies about weight: bias gets roughly forty-five seconds of dedicated runtime, market structure gets over two minutes, Fibonacci gets about a minute, and execution closes the video. This page presents the video's structure and how it sequences bias, structure and Fibonacci as a day-trading routine on GBPUSD; the source is a walkthrough of a workflow rather than a codified rule set.

Topics

pine script · trading strategy · tradingview strategy · price action · forex strategy · gbpusd trading strategy · fibonacci retracement strategy · day trading · scalping strategy · break and retest strategy · market structure trading · technical analysis strategy · supply and demand strategy

Frequently asked questions

What is a break and retest strategy?

Break and retest waits for price to break a structural level, then return to that level and hold it before entering in the direction of the break — using the retest as confirmation that the level has flipped its role from resistance to support, or vice versa.

Where does Fibonacci fit into a break and retest setup?

In this video's sequence it comes last among the analysis steps: bias first, then market structure, then the Fibonacci retracement drawn across the move to measure how deep the pullback runs. The 50% and 61.8% levels are the ones it treats as key reference points for the retest.

What pair and timeframe does this strategy use?

The walkthrough is built around GBPUSD, with examples shown on lower timeframes for day trading. It does not commit to one specific trading timeframe as the strategy's home.

Why does the video start with bias instead of an entry rule?

It labels bias "the most important step" and covers it before any indicator is added — the directional read is what decides which breaks are worth trading, so the structure and Fibonacci steps that follow are filtering within an already-chosen direction rather than picking one.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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