City, the defending Premier League champions, have had an uncharacteristically difficult campaign. They have lost seven of their 24 league matches, conceding 35 goals along the way, and currently sit fifth in the table.
However, Guardiola's side remains in a much stronger position than United, who are enduring a miserable domestic season.
Manchester United, currently languishing in 13th place, have suffered 11 league defeats and lost their last three Premier League matches.
While they have shown promise in cup competitions - performing well in both the Europa League and FA Cup - their league form has left much to be desired.
"Maybe we'll finish 14th-15th but we are fifth, we are not dropping like other teams that had success in the past," said Guardiola.
Guardiola's remark comes ahead of City's upcoming fixture against Newcastle United at the Etihad Stadium on Saturday.
With City eager to close the gap on the teams above them, a victory will be crucial in their bid to climb back into the title race.
Manchester City secured a second successive Premier League victory at home against Sunderland, Chelsea were held scoreless away to Bournemouth while Tottenham managed to beat Brentford.
Manchester City manager Pep Guardiola insists his side are moving in the right direction as they continue to evolve following an off-season of significant rebuilding.
Ruben Amorim cut a furious figure at Old Trafford as Manchester United surrendered another lead in a 1-1 draw against relegation-threatened West Ham on Thursday night.
Manchester United will be without stars Bryan Mbeumo and Amad Diallo for a significant number of matches when they leave for the Africa Cup of Nations later in December.
