With the UK general election in less than a week, the GBP/AUD exchange rate is reaching a critical point in it’s trend so far this year. A ‘Pennant’ pattern is illustrated by the range that the rate trades in narrowing. Eventually this would reach a point which will force the rate to pick a direction and is normally followed by a spike one way or the other. Considering the UK general election being now less than one week away, there is a strong argument to suggest that the rate will remain in this pattern for the next week. Provided there is a UK government formed closely after May 7th, this will likely bring demand back to the Pound and causing the rate to move higher.