Break and Retest: A Simple Repetitive Price Action Pattern?

Goal of This Lesson:

To help beginners understand how the Break and Retest pattern works, why traders wait for confirmation instead of chasing price, and how this simple repetitive setup can help identify potential trend continuation in the market.

In my experience, finding a reliable strategy feels overwhelming. However, you can simplify your approach completely by mastering the break and retest pattern. It really works.

How to Understand Break & Retest?

A Break and Retest Pattern is when price breaks an important support or resistance level, then comes back to test that same area before continuing in the breakout direction. 

Traders tend to use this repetitive setup because it gives better confirmation and helps avoid entering the trade too early.

The Breakout: The market pushes hard through a known support or resistance level

• Resistance → broken = potential bullish shift
• Support → broken = potential bearish shift

Retest/ The Pullback: It turns around to revisit that exact price zone

• Old resistance → becomes new support
• Old support → becomes new resistance

Continuation If the level or the zone holds, price continues in the breakout direction

How Does the This Pattern Look on AUD/CAD?

Weekly Chart

On the weekly AUD/CAD chart, the trend is still strongly bullish. Price is consistently making higher highs and higher lows, showing continued upside momentum.

Price has already broken a key resistance level and is now retesting it as support. This is a normal move in an uptrend and often acts as a pause before continuation.

Simple view on the weekly chart:

• AUD/CAD is in a strong bullish trend with higher highs and higher lows.
• Price has completed a break and retest of a key resistance level.
• That resistance has now turned into support.
• Price is currently reacting at this support zone, showing buyer interest.
• If support holds, the uptrend may continue.

Overall, the weekly chart remains bullish, and price is still favoring further upside as long as support holds.

Daily Chart

On the daily AUD/CAD chart, the trend is still bullish. Price is moving upward and recently broke a strong resistance level.

Now, price is pulling back to that same level, which has turned into support, this is called a retest. If this support holds, buyers may step in again and push price higher.

Simple view on the daily chart:

• Trend is still up
• Resistance has turned into support
• Price is retesting that support
• If it holds, price can continue going up

How the Current AUD/CAD Price Action After the Break and Retest?

Price has already been retesting and already done the break and currently it is retesting, and after it massive surge of bullish momentum happened. This is not a coincidence =, this is simple repetitive patter than always happening in the markets.

Daily Chart Observations:

• Right after the retest of the previous resistance acting as a support price tend to have massive rally to the upside.

Final Take

Sometimes trading doesn’t need to be complicated.

The Break and Retest pattern?

One of the simplest patterns the market shows before the next big move.

Instead of chasing price, patient traders wait for the exact pattern…

Letting the market come to them!

Then ride the momentum once the exact confirmation of the pattern happened.

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Check Out My Contents:  

Beginners Path: 

• Beginner Trading Steps: 4 Rules to Follow Before You Trade  
• The 1% Risk Rule: The Most Common Mistakes That Quietly Destroys 90% of Traders  

Mastering Popular Forex Pairs Using Simple Price Action Strategy 

Ready to learn simple price action strategy? Here’s how to do it step by step:  

• USD/JPY Analysis Today: Simple Trades, Clear Moves, for Beginners Using Price Action  
• Simple Day Trade Price Action On EUR/USD: Why the Drop to 1.14190?  
• Simple Price Action Analysis on EUR/CAD: EURCAD the Pair for the Week?  
• Simple Price Action Strategy on USD/ CHF: 0.80000 the Key Ceiling for USD/CHF Sell?  
• Price Action Analysis for GBPCAD Trade: A Potential Trade for This Week or Next Week? 
• EUR/GBP Trading Guide: How to Spot High-Probability Setup a Week Ahead Using Simple Price Action Strategy? 
• Simple Price Action Trade on CAD/JPY: 115.000 the Key Floor for CAD/JPY Buy? 
• USD/JPY Price Action Outlook: Is 158.500 the Key Floor for a Potential New High? 
• CAD/JPY Price Action Breakdown: We Anticipated the Move Twice to 116.500, Is Price Action Really the King?
• GBP/NZD Trade Ideas Using Simple Price Action Strategy: Will Price Drops to 2.28000?
• USD/JPY Technical Forecast: 158.500 Floor Retest for Preparing for New Highs?
• GBP/CHF Price Action Ideas: Is 1.05500 the Ceiling for a New Low?
• GBP/CAD Simple Forex Price Action Ideas: Is the 1.84500 Support Level Holding?
• AUD/USD Simple Price Action Forecast: Why Buy at 0.71700 Support Area?
• GBP/NZD Price Action Idea: Is GPB/NZD 2.3000 Key Floor for Bullish Continuation?
• GBP/USD Price Action: Trade Setups on a Ranging Market?
• USD/CAD Simple Price Action: Is 1.36500 the Key Bullish Floor?

Learn How to Trade Gold  

Gold is still one of the most traded assets, here’s how to trade it with confidence:  

• XAUUSD Price Action: A Beginner Buy Setup for Next Week  
• How to Trade Gold Using Simple Price Action Outlook: 4500 the Key Zone for XAUUSD Buys? 
• The Simplest Way to Trade XAU/USD Using Price Action Analysis: Buy and Sell Anticipation on Gold?
• XAU/USD Price Action: Will Gold Rally to $4,900 Today?
• Gold (XAU/USD) Price Action Forecast: Will XAU/USD Drop to $4650?
• Gold (XAU/USD) Trade Ideas: A Simple Price Action Analysis on Gold This Week?
• Gold (XAU/USD) Price Action Idea: A High-Probability Trade Setup on Gold?
• Gold XAU/USD Price Action Idea: Is a Bullish Momentum Coming?

Mastering Traders Mindset  

Your mindset is what separates steady growth from costly mistakes. Focus on these essentials:  

• Trading Mindset: Why Trading Exposes Who you Really Are? 
• Consistency in Trading is Key: Why Discipline Beats Intelligence?

Beginner Trading Roadmap  

Not sure where to begin? Here’s a simple roadmap to guide you:  

1. Common beginner Traders Mistakes → avoid overtrading, revenge trading, and chasing the market.  
2. Master Traders Psychology → build discipline, patience, and emotional control  
3. Mastering Risk Management → learn how to have a sustainable trading.  
4. Master Simple Technical strategies & Indicators → especially price action, key levels, and market structure.  
5. Applying to Real Market → forex, crypto and indices.  

By building step by step; from basics → real trading → mastering the craft, you’ll gain clarity, confidence, and steady progress without ever feeling overwhelmed.  

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Disclaimer:   
Trading forex and derivative instruments involves substantial risk and may not be suitable for all individuals. Only use funds that you are prepared to lose. It is important to understand how these markets work and the risks involved before trading, and to seek independent financial advice if needed. All market analysis and insights shared are intended for educational and informational purposes only and should not be considered financial or investment advice. May 5, 2026