City, who have won the Premier League for the past two seasons, are the highest scorers in the league with 29 goals in just nine matches, yet Guardiola is still not happy.
First half strikes from Gabriel Jesus and David Silva earned City a 2-0 win over Crystal Palace, as they bounced back from losing to Wolves prior to the international break.
They remain six points behind league leaders Liverpool, however.
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Guardiola’s team face Atalanta in Group C of the Champions League on Tuesday and the Spaniard believes too many missed opportunities means they will have to put their European ambitions on hold.
“We miss a lot of chances in the final third and we have to do that to be clinical,” said Guardiola. “When the people say about the Champions League being the target, we are still not ready.