We enter Saturday’s 15:00 (UK) showdown one point clear at the Premier League summit with just six games remaining, while our opponents currently sit 19th in the table.
Despite the distance between the two sides in terms of league position, the Hornets will be desperate to gain a positive result and give their survival ambitions a substantial boost.
And Guardiola expects Watford to push City to our limits, explaining that every result between now and the end of the campaign will have a huge impact on a number of sides’ prospects.
“Roy Hodgson is an incredibly experienced manager, when at Crystal Palace we always struggled to break them down and do good games,” the City boss reflected in his pre-match press conference.
“Maybe (except for) three, four or five teams in the middle of the table, everyone is playing for some targets, to win the Premier League, qualify for the Champions League or fight relegation, every game is important.
“Watford, when you analyse, (they have) quality and physicality in the middle and up front.
“But at the same time, we have to be ourselves and try to get another three points.”
Hear the boss' thoughts in full via the video above...
City host Watford at 15:00 (UK) on Saturday 23 April and we’ll have comprehensive coverage here on mancity.com and the official app.
Live updates begin in our Matchday Centre two hours before kick-off, whilst our Matchday Live show, with guests Michael Brown and Paul Dickov, starts 60 minutes before we get under way at the Etihad.
During the game you can listen to live audio commentary from Alistair Mann and Andy Morrison, whilst a match report and post-match reaction from players and Pep Guardiola will be available shortly after the final whistle.
CITY+ subscribers can enjoy a full-match replay from midnight after the game, when free to watch highlights will also be available.