We are treating the drop from 2.0396 as a leading diagonal (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. However, the decline from 2.0025 is choppy and may be a correction.
Until proven wrong though and because we are expecting a deeper decline soon, we are sticking with the bearish bias. Risk can be moved to 1.9909.