Trading forex breakouts can be highly profitable. Infact there are pro traders who only trade breakouts. For example on a breakout a pair like GBP/USD or GBP/JPY can easily travel 200-500 pips up or down. If you know how to trade breakouts you can trade these breakouts. However there is one problem. You need to learn how to differentiate between a true breakout and a false breakouts. Trading false breakouts can burn your account equity pretty fast. Most of the time the market will tend to make a breakout. When you try to trade it, market will retrace and hit your stop loss. So beware before you trade breakouts you need to solve the problem of how to tell this is a true breakout or a false breakout.
http://www.youtube.com/watch?v=CLK5SDQFGX4
Now keep this mind. Each currency pair is different. You cannot trade EUR/USD with the same breakout strategy that you trade GBP/USD with. Each currency pair has a different behavior. Just keep this in mind. This will help you a lot. GBP/USD makes a lot of breakouts. These breakouts tend to take place just around the London Open time. Watch the video below that explains a GBP/USD London Open Breakout Strategy!
Now we were talking about false breakouts. This video tries to explain how to avoid false breakouts!
This is another London Open Breakout Strategy!