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Manchester United were 14 points behind the leaders, Manchester City, with a 0-0 draw against Crystal Palace.
United lost to City 3-1 in the match preceding Palace and is now almost out of the race.
Even being in the top four seems tough when they are seven points behind Chelsea.
But Giggs thinks that they can still challenge Liverpool and City, but insists that they must win consistent victories.
"Manchester City and Liverpool, the teams are consistent," said Giggs. Sky sports.
"When you are not, the gap will obviously be great.
"When your closest opponents are as far away as you, it's difficult to face them, there are 13 matches left in the season, it's time to get them back.
"But the only way to do that is to play a series of seven or eight games without defeat – small steps to restore that confidence."
Jose Mourinho has been under pressure in recent months, but he seems to have saved his job in the short term.
A series of results including wins over Newcastle and Juventus appear to have eased the pressure, although Mourinho would be hard pressed to keep his position if United failed to finish in the top four.
But Giggs thinks that sacking the Portuguese would be a bad option.
"I do not see why changing the manager at this point would change anything," Giggs said.
"Everyone knows how successful he has been over the years.
"I think we have not had that stability over the years – we have to stay with him.
"But the results must also change, I think we have the manager, the players to do it."
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