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This is probably not possible but...

I'm looking to update cells in a Google spreadsheet using the conditional formatting tool.(Changes to SERPs rankings)

So when the number in a cell is changed, it recognises if the number was greater or lesser than the current number and then changes the cell colour to red for lesser and green for greater.

So it needs to be able to store the last changed figure in order to make the decision, it doesn't look to be achievable from the conditional formatting options.

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This is not possible as far as I can tell. Google's conditional formatting is not very robust.

Here is Google's Conditional formatting help, although I don't think it's very helpful in your situation. It doesn't appear you can even use a cell value for the conditional formatting.

EDIT:

I found this link recently. It's much more complicated, but you can do what you want using their Javascript API.

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