Now that i think of it, the verb "guardare" and " vedere" is like "to watch" and " to see/look" in english.
Your answer is correct, but guardare is used like in the sense of "to look/stare"like happens in english.
He's looking/staring at me in a weird way, (lui) mi sta guardando/fissando in un modo strano.
In this case, ci guardano, is like they are watching you carefully, while ci vedono is like they are seeing you in that moment but they are not interrested in you much. But in any case you are right, ci guardano is correct, but is more correct to use "ci stanno guardando", i hear it more often with gerundio.