The result sees City cut Liverpool‘s lead to four points.
Guardiola said, “I am proud of them, but not just today. We lost two games in four days but you can’t forget what they have done for 16 months. We knew that it was a final today, if we lose it is almost over.
“All credit to these incredible players. That is how we have to play in the Champions League. Both teams tried to search for each other, we were not scared, we had no fear and we had a lot of pressure.
“They are leaders, it is four points but we have reduced the gap. We knew that if we won we would be in contention to fight for the Premier league, if we lose it is over.
“I don’t remember a league so tough, there are so many huge contenders fighting for the title. It is closer, every game is a final.”
Guardiola praised his players for covering some key absences.
“The game was a real game for both sides, we beat an incredible team. We were outstanding from the first minute. We are happy for this victory to reduce the gap. Everything is open.
“We don’t have a left-back. Huge compliments to Aymeric Laporte against these strikers. Everyone was outstanding.
“We need Sergio Aguero in these games, his quality makes the difference. To win these games, he has done it all his career and his finish was incredible.
“Liverpool don’t concede goals, and we scored two. We played with courage, so aggressive in our pressing. They are incredibly fast in behind, so dangerous.
“If we lose today it is almost done, it would be so difficult. But we are four points behind them and they are the leaders. We have to fight a lot, but this gives us a lot of confidence.”