The gap between the champions and Liverpool is now down to four points and the Reds will move within one point of the leaders with victory over Arsenal in their outstanding game on Wednesday.
Man City hit the woodwork twice at Selhurst Park as they failed to breach Crystal Palace's defence for a second time this season, with the Eagles running out 2-0 winners in the first round at the Etihad Stadium.
Not for the first time this season, Guardiola refused to make a substitution and the Spaniard says he has no regrets regarding his players effort.
"I think they [Palace] played good," he told Sky Sports after the game.
"There are still many games to play, we have to win a lot of games but the way we played, there are no regrets about the team. We would have preferred to win of course but the game was well played.
"We played to win the game; we created more. The way we played was amazing in a difficult stadium with the grass not perfect."
He added to BBC Sport: "We played a really good game. In 90 minutes, we conceded mistakes a little bit, but the way we played was really good.
"Luck doesn't exist in football. We have to score goals and we didn't do it. We played to score goals and concede few. We struggled a little bit.
"The guys who were playing were playing good, that's why I didn't make changes. We didn't score, that was the mistake.
"The team that was there today was there before and will be there in the next game. I am very pleased with the performance and the way we played."
