Toto Wolff thinks Mercedes could be in for a fight this weekend in Hungary.
"I think it's a bit of both, so we just have to keep working," the Dutchman is quoted by Brazil's Globo.
However, with the circus having now moved on to Hungary, Mercedes team boss Wolff is not celebrating just yet.
"I think where we lose to Red Bull is in the slow corners - that seems to be our vulnerability," said the Austrian.
"On the straights and the fast corners we are faster, but we need to keep developing, pushing and understanding our car."