Pro: Here's How To Profit From The Plunging British Currency

James Barty, Bank of America's head of global cross asset strategy, was a guest on CNBC's "Street Signs" to talk about the British pound's flash crash and his outlook looking forward.

Barty quickly pointed out that a flash crash in the forex market during the Asian trading session is "not that unusual" given the lower volume and liquidity. In addition, concerning comments from France's President regarding any future Brexit negotiation spooked the fewer investors and traders and then automated trading machines kicked in.

Barty continued that clients are now wondering if this is a sign of further declines for the pound since the currency showed similar characteristics of what is normally reserved for emerging economies.

Barty does have some concerns that the ongoing weakness in the pound will have negative effects for the British economy. Specifically, he suggested that the Brexit vote outcome initially represented a "plane crash" but is now reduced to a "slow motion car crash."

"The lower the sterling goes, the more upward pressure we put on prices, the more downward pressure we put therefore on people's real incomes, the more it's going to hit the domestic part of the U.K. economy," he said.

Barty went on to offer some advice to investors who are bearish on the U.K. economy. He noted that many stocks which are exposed to the domestic economy, such as retailers, travel and leisure related companies, are still trading below their post-Brexit lows and will continue struggling.

"Those are the areas where you are going to see the weakens," he concluded. "Those are the areas where you are going to see the pain."

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