Manchester City may still have the push necessary to win and defending the Premier league title. Pep is an outstanding coach and despite having to let go of some good players in his squad, there is a very good chance of going ahead to win the league again. Champions league on the other hand, would be quite difficult but not impossible for City to defend the trophy.
While I think they could go ahead to defend the EPL title win, there are going to face some stiff resistance as there are other clubs that has made some really good improvements and would be equally as dangerous on the pitch. Manchester City may be having some sort of dominance in the Premier League, it may not last very long.
I think Man City has turned out to be a very strong team at the moment. Not only from the quality of the players and staff they have, but they also have a winning mentality and are certainly supported by healthy finances. So for this new season, I think Man City will remain the strongest favorite, but there is still a possibility for other teams to shift Man City's dominance. My guess is that Man United and Liverpool will be in close competition with Man City next season.