Vitor Pereira’s side come to the Etihad Stadium on Wednesday at 19:30 (UK) for a game of huge significance for both ends of the Premier League.
City have the opportunity to keep the title race in our own hands, trailing leaders Arsenal by five points but with a game in hand and a home match with the Gunners still to come.
Meanwhile, Forest are just two points above the drop zone after a difficult campaign and desperate for points to pull away from danger.
They have, however, reached the Round of 16 in the Europa League and finished seventh last season, which shows there is plenty of threat in the squad which Guardiola is wary of.
“The Premier League is so tough and difficult. Look at the results of the teams in the relegation battle against top teams, right now,” the boss said.
“Normally the teams are in the low [part of the table] for different circumstances and not expected to fight for the Premier League.
“At the beginning of the season there are always surprises. When we arrive at the end of the season normally teams at the top competing for Champions League places don’t drop many points. But look how many [this season]. It’s so tough.
“It’s really tough. Always I said that I don’t judge the teams depending on the position in the table, never. I know the quality that they have and this is what remains important to me.”
Watch Pep’s press conference in the video above…