#CurrencyPairPrediction Fibonacci retracement and extension are popular technical analysis tools based on the Fibonacci sequence, a series of numbers where each number is the sum of the two preceding ones (e.g., 0, 1, 1, 2, 3, 5, 8...). In trading, key Fibonacci ratios (23.6%, 38.2%, 50%, 61.8%, and 78.6%) are used to identify potential support and resistance levels. Retracement levels are drawn on a chart between a significant high and low point, and these horizontal lines are thought to represent areas where the price might retrace or pull back before continuing the dominant trend. Fibonacci extension levels (typically 161.8%, 261.8%, and 423.6%) are used to project potential price targets after a retracement has occurred and the price resumes its initial trend. Traders often look for confluence, where Fibonacci levels align with other support or resistance indicators, to increase the probability of a price reaction at those levels. While these tools are widely used, it's important to remember that they are not guaranteed predictors of future price movements and should be used in conjunction with other forms of analysis.