The Spaniard will start the race eighth on the grid, one spot behind teammate Felipe Massa at the Nurburgring.
Alonso told reporters: "We've made a step forward for this race, no doubt. At Silverstone we were not competitive. We were one and a half seconds off the pace there in practice and qualifying, which has not been the case here.
"So we are back to a more normal level of competitiveness, although we still need to improve, no question about that.
"We have not been the quickest before, especially on Saturdays, and we're not still not the quickest now. But we are more confident and optimistic for tomorrow because the car is performing in a more normal way."