The Scot guided the east midlands club to a third straight league win with a 2-1 success at Peterborough on Saturday to take his side to within a point of the Championship play-off places.
It is the best form Forest have shown since Davies took over at the turn of the year but he is refusing to get carried away and has told his players that their recent progression must continue after the international break.
"I am pleased because my first objective when I came here was to keep this club in the division. There is no doubt that, with the resources we had, that was a wonderful achievement," said Davies.
"The second challenge was to progress and I think we can all agree that progression is there.
"We are getting better but we are still a young side and there is still plenty more to come and plenty for us to do.
"I can't get excited about where we are in the league table because it will fluctuate constantly. Once we get to the later stages of the season we will look at it, but the main thing is that we keep progressing and keep working."