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The British pound is oversold, and news of an income tax raid could actually be supportive for the currency.

The pound to euro exchange rate (GBP/EUR) has reached oversold conditions and wily opportunists will see tactical buying opportunities.

The exchange rate has fallen 0.80% this week to reach a low of 1.1345, a level last seen in May 2023, as markets raised bets the Bank of England would soon quicken the pace it cuts interest rates in response to a constrictive budget being announced next month.

From a fair-value perspective, GBP/EUR is trading well below the mean and median consensus forecasts of the world's major investment banks.

Following this week's decline

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