City will travel to the John Smith's Stadium as favourites to progress into the quarter-finals, but the Terriers have won their last six matches in all competitions and are just four points off the automatic promotion places in the Championship.
Guardiola also believes that Thursday night's Super League match between Huddersfield Giants and Salford Red Devils could have an impact on the game and warned his side that there is no margin for error.
"Right now Huddersfield are in a big moment. They are doing really well and a lot of confidence," he told reporters.
"Yesterday there was a rugby game in their stadium, so we can imagine the conditions of the pitch, but it is a final for us.
"In the cup there are no second chances. You are in or you are out in that competition. We are prepared to fight and go to the quarter-finals."
City also go into the match in good form having won their last four outings in all competitions.