Guild Warfare

Hi all,
I have a question about bidding on guild warfare. I accidentally hit the lvl 5 city this am (our guild is lvl 4) to challenge. It aptly gave the message please upgrade your guild. My question is this: Does that count as our bid even though we cannot challenge that city yet? I have tried to bid on the lvl 4 city that I meant to when I first hit challenge but the challenge button is grayed out, so I am unable to challenge any other cities. Thanks for any responses that are available to this question.
Gal