This could happen if Manchester City can play their game properly and win the next matches, as the chances of winning the next matches are high. In that case, Manchester City might be above Forest by the end of the season, if City recovers their performance. Moreover, Forest are not able to maintain their game strongly at the moment, so Manchester City might take their position. Manchester City will try to get that place for the Champions League and they will return to their form. And if Forest go ahead with their situation, then they might finally have hope of playing the Champions League last season. However, we should not be so sure yet whether Manchester City will be able to complete their matches successfully, and how Forest will finish their matches.
Guardiola must return City to their former strength by the end of the season, I have no doubt that they are capable of rising above Nottingham. Now the main goal is to prepare for the new season, I do not think that the management is seriously considering the possibility of dismissing him, difficult times happen to everyone, but it will be difficult to find a coach like him, it is better to give him the opportunity to get out of this crisis and thereby show that they trust him, for Guardiola this will also be an important gesture.