UniCredit Recommends Bet on Pound If It Weakens to Below $1.6350

By Justin Carrigan

July 29 (Bloomberg) -- Investors should back the pound against the dollar if the U.K. currency drops below $1.6350, according to UniCredit SpA.

“Encouraging U.S. data could offer sterling some cushion through the U.S. equity channel,” Roberto Mialich, a currency strategist in Milan at UniCredit Markets & Investment Banking, wrote in a note today. “Go long on a break through $1.6350.”

Britain’s currency fell to $1.6377 as of 7:53 a.m. in London, from $1.6428 yesterday.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net