The most common and most likely answer to this crossword clue is the 6 letter word PALING
I've seen this crossword clue in The Daily Telegraph
P
A
L
I
N
G
More clues leading to the result PALING
Buddy explains!
The straight part
We know that "Fence/losing colour" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case fence/losing colour = paling.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does PALING mean?
PALING verb- To turn pale; to lose colour.
- To become insignificant.
- To make pale; to diminish the brightness of.
- To enclose with pales, or as if with pales; to encircle or encompass; to fence off.
- A pointed stick used to make a fence.
- A fence made of palings.
- A fence made of galvanized sheeting.