#CurrencyPairPrediction Fibonacci retracement and Fibonacci extension are both tools used in technical analysis, but they forecast different aspects of price movement: Retracement identifies potential areas where a price might pull back temporarily before continuing its original trend. It’s used to forecast corrections within a trend. Common levels are 38.2%, 50%, and 61.8%. Extension projects where the price could move beyond its current trend once it resumes. It’s used to forecast profit targets or the extent of a move after a retracement ends. Common levels include 127.2%, 161.8%, and 261.8%. Key difference: Retracement focuses on temporary reversal points inside a trend. Extension forecasts how far a trend might continue after a retracement.