Manchester City manager Pep Guardiola said his side had "reached their highest standard" of the season as they claimed a dominant win over Watford to move top of the Premier League for the first time in 2021-22.

Raheem Sterling headed the reigning champions ahead after only four minutes, when free at the back post to meet Phil Foden's excellent cross from the left.

The hosts were repeatedly ripped apart by City's movement, passing and creativity and only a number of saves from goalkeeper Daniel Bachmann kept the score down to one goal in the first 30 minutes.

But City got a well-deserved second as Bachmann denied Ilkay Gundogan, but the rebound fell to Bernardo Silva, who showed excellent skill to beat two defenders and finish well from a tight angle.

Silva then grabbed his second and City's third, cutting in from the right side of the penalty area and curling a fine finish past Bachmann.

Cucho Hernandez pulled one back for Watford, following in to convert a rebound after his first strike had hit the foot of the post.

"We're an incredibly consistent team," said Guardiola, whose side recorded seven consecutive wins in all competitions.

"We played a really good performance and missed a lot of chances. The game could have been over after 10 or 15 minutes and the most important thing is we played in a consistent way that made us control the game. We scored three beautiful goals and could've scored more," he said.

After 15 matches, City - title winners in five of the past 10 seasons - are a point ahead of Liverpool.

Chelsea began the day as leaders, but are now a point behind the Reds in third place, after losing 3-2 to fourth-placed West Ham.

"It's better to be at the top, but we will drop points and hopefully the opponents will as well but there is a long path ahead," added Guardiola.

For Watford, this was a sixth defeat in eight matches under Claudio Ranieri, albeit from an incredibly tough run, including encounters against five of the current top seven.

They performed excellently to win 5-2 at Everton and 4-1 against Manchester United in Ole Gunnar Solskjaer's last match in charge of the Red Devils, but have only picked up six points since Ranieri replaced the sacked Xisco Munoz in October.

Ranieri received a hero's reception last Sunday when he took his new side to Leicester, the club he led to the Premier League title in 2015-16.

But, just as in that match where they lost 4-2, the Hornets' defensive problems were on display and only fine goalkeeping from Bachmann denied City a hatful of first-half goals.

Goal scorer Sterling also had another effort saved, Jack Grealish - back in the starting line-up for the first time in a month after injury - was denied three times and Joao Cancelo fired wide as Watford were outclassed.

After Silva doubled the visitors' lead in the 31st minute, it became a question of how many City would score.

Sterling is now on 99 Premier League goals and had a chance to reach his century, but had an effort palmed away by Bachmann, who also fingertipped a Foden drive on to the post.

The chances kept coming for City with Gundogan shooting over, before Silva's second goal - and seventh of the season - came in the 63rd minute.

Grealish also had a strike deflected on to the crossbar, and Bachmann saved from Aymeric Laporte, before substitute Hernandez claimed Watford's consolation in the 74th minute.

"At 3-0 down we never gave up," said Ranieri. "We conceded a lot of counter-attacks but I saw a lot of spirit, togetherness and commitment. I'm satisfied.

"What's important now is the experience against the big teams. Now we start playing teams like us who are fighting against relegation. Our Premier League starts now."

The only downside for Guardiola was a potential ankle injury for striker Gabriel Jesus, who was cynically hacked down by Craig Cathcart, with the defender only receiving a yellow card, not a red.

"Sometimes when the defender hacked an opponent, it's a red card. In the last five minutes, he couldn't play, he was injured. Hopefully it's just a knock and he can play in Germany on Tuesday [against RB Leipzig in the Champions League]," said Guardiola. "

(BBC)

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