The Citizens saw their 18-match winning run in the top flight come to an end on Sunday after being held to a goalless draw against Crystal Palace, who saw an injury-time penalty saved by Ederson.
And while City are still 12 points clear at the top of the table, Guardiola insists they cannot afford to start thinking about silverware in January.
Speaking ahead of tonight's visit of Watford, he said: "Of course, we are in a good position and I have said to my players many times: 'don't think about winning the title, focus on the next game'.
"If you think about far away we are going to distract what we have to do today and that will be a big mistake.
"In football, everything can happen. We can get a lot of wins in a row, we can stay a lot of games without winning.
"That has happened in the past with many other teams.
"We just have to focus on what we have to do and correct our mistakes from today and keep going.”