The manager was pleased with the midfielder's performance for their 7-0 romp over FA Cup opponents Rotherham.
Guardiola said, “Today he (Foden) was there and his movement was incredible.
“It was 90 minutes for his experience and self-confidence, but of course he must improve.
“If he plays its because we believe he can play, not because he's a city fan or a nice guy - we believe he can play!
“Danilo deserved to play and played well against Southampton, and today Kyle played best game of the season by far.
“It's difficult for me to choose. I never give Danilo four or five games in a row, and he is an incredible full back but sometimes I'm firm."