Our longer term bias remains bearish but the GBPUSD may continue to bounce over the next few days. The drop from 2.0396 may be a leading diagonal as wave 1 of C (within the A-B-C decline from 2.1160).
Under this interpretation, the GBPUSD rally from 1.9599 is wave 2 within the 5 wave drop (wave C) from 2.0396. The pair failed this morning at the 50% of 2.0396-1.9599 at 1.9998; which may be the top of wave 2.