Guild Wars - FAQ

[Ozball]

Unknown at this time, however:

@Sirrian

If you finish near the top of your bracket, it’s LIKELY (but not 100% certain) you will move up the following week, perhaps even more than one bracket. Similarly, if you finish near the bottom you may move down… this all depends on how well you do during the week, and how well the other guilds of similar ranking do too!

This would suggest even at #2 you could still move up, depending on how the guilds in the higher bracket do. If you do VERY well and the higher guilds do crap, you could even move up more than one bracket.