After defeat against Wolves last time out, City produced a dominant display to ruthlessly dispatch a Palace side who came into the game in sixth place.
City looked assured throughout, managing 72 percent possession and creating 21 chances.
Guardiola says he is delighted with the reaction of his players in a game he feels could have been potentially difficult.
READ | Report: Palace 0-2 City
"As always, a good reaction - the team is always ready," he said.
"We play good at a stadium like this where they create a lot of chances. We concede two chances at the end when Benteke came on, they played a lot of long balls and always with the second ball they are strong.
"Unfortunately, we cannot convert enough chances we had and we suffered.
"Always in the Premier League at 2-0 it’s never over. It’s an important three points after international break, away at Selhurst Park is always difficult.
"They were one point below us, they are doing an incredible season.
"I am delighted. Hopefully we can start from here and continue with good performances."
City’s second goal was a thing of beauty.
A quick break from inside our own half ended with an impudent scooped pass from Raheem Sterling that was brilliantly volleyed home by man-of-the-match David Silva.
It was trademark City, with our pace and creativity too much for Palace to deal with.
Guardiola paid tribute to Sterling’s assist but called on the forward to be more clinical after he missed three decent chances in the second half.
“Yeah. it was an incredible assist,” he said. “At the same time, his mates gave him assists and he could not score a goal. But next time he will do it.
“We created a lot of chances and their keeper made a lot of saves.
“It’s okay, hopefully we can be more clinical in the future, but it was a good result.”
City started the game without a recognised centre-half, with Rodrigo and Fernandinho operating in unfamiliar positions.
They were both superb throughout, nullifying Palace's attacking threat.
Guardiola paid tribute to both and says pairing them together is an option he can utilise throughout the season.
“Thank you so much for the effort because it is not their position,” he said. “But our buildup is faster and both were incredible.
“Rodri didn’t train one day in that position but he is intelligent and smart.”
“The season is long. Everyone will play. It’s another option but we knew it at the beginning.”
City’s win cut Liverpool’s lead at the top to five points, with Jurgen Klopp’s side travelling to Old Trafford tomorrow to face Manchester United.
So, will Pep be tuning in to watch that one?
“I have to watch Atalanta!” he said.