Mattie Pollock headed a second-half winner as the Hornets won back-to-back matches for the first time this season and claimed their second away victory of the campaign.
Gracia stressed the need to capitalise on the win over the hectic period ahead, but also reflected on a fine away day.
He said: “We spoke when we got the first away win after a long time and now we’re going to speak about winning two games in a row.
“It’s something amazing for us. We know all the work we are doing to be able to compete in this way and I’m really happy for the players, for the staff and for the supporters.
“We knew about the quality of Leicester and their individual players. We knew how to prepare, knowing we needed to defend well and then when we had possession we tried to show our quality.
“We conceded an early goal after playing very well in the first few minutes. We were able to manage that situation and to keep believing in our plan.”
+3 under the tree! 🎄 pic.twitter.com/TOvnOscGCQ
— Watford Football Club (@WatfordFC) December 26, 2025
The win puts Watford eighth, one point off sixth, ahead of three more games in the next nine days.
Gracia believes his side are getting better at just the right time but knows things can also change very quickly.
He said: “I think all the players are improving and getting to know each other better.
“Before the game I spoke with the players I told them that on these days it is about solidarity, helping each other, these kinds of values.
“We have to show on the pitch that solidarity and to be supportive, helping each other during the game.
“Today we saw a good face because if you don’t do it, you don’t have any chance.
“We have four games in 10 days and we don’t have much time to enjoy too much.
“We have to be focused and prepare the next game against Norwich. We are working to win games and, for me, the feeling is that the team is growing.
“Two results in a row is a consequence of the work.”