The Croatian defender scored his second spectacular goal in four days with his strike against Luton Town capping off another impressive performance.
And the City boss says Gvardiol is really settling into City life after a difficult start.
“[He has] improved a lot,” said Pep.
“He arrived and in some periods was confused. He lost a lot of balls, every time he had the ball he wanted to make exceptional things.
“We talked together and said the defender had to do the most easy, simple things.
“You have to demand the creativity from Doku for example.
“He got incredible the message and played really well, defensively very strong and can play in the middle, more back and he’s difficult to find - he’s a left footer.
“You find with the left footers they don’t use much well the right foot, but he is really good with the right, more comfortable with the right than the left.
“He scored a good goal in Madrid and in the first half had another chance and he is now a threat in the final third.
“He receives in central positions when the wingers come with two or three players to make two against one, three against one, against Doku or Jack, he’s free and close to the goal.
“He has an incredible talent and I encourage him to do it again and again and again.”
Guardiola also gave an update on the availability of John Stones, Kyle Walker, Nathan Ake and Rodrigo - none of whom featured in the win over Luton.
“John has some problems, some niggles. He’s fine. He’s not injured but doesn’t feel comfortable, so we didn’t take a risk.
“Nathan and Kyle wanted to be on the bench, so I said, ‘okay, go on the bench.’”
And when the boss was asked if Rodrigo had benefited from his rest against the Hatters, he smiled: “Absolutely. He is going to rest on Wednesday as well. You believe me?”
Watch Pep’s press conference by playing the video above…
