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New length is added at the growing tip. So if you leave the fork there, that's where it will stay. The trunk(s) will get fatter, but the initial fork will always be in that spot. At that size it will be OK to remove the smaller fork. There will be a slight kink at that point, but the scar will quickly seal over and become less and less obvious as the tree grows. And yes it's likely to push the fence over at some point in the future. How long that takes depends on your climate etc.
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