The Spaniard insists that the Bavarians will improve further and says that the recent rest will help players mentally ahead of upcoming fixtures
Having already guided the Bavarians to the Club World Cup title in December, the 43-year-old former Barcelona coach is now looking to repeat the treble won by the club last season under Jupp Heynckes.
While Bayern are favourites to retain their crown, a feat never previously achieved in the tournament's current format, Guardiola warned that their best is yet to come.
"We can improve our high level even further," Guardiola told the club's official website.
"Every day the players understand a little more about the mechanisms and our ideas.
"We talk about what we do well and not so well. Therefore, it is normal that our understanding grows."
In relation to the short rest afforded to Bayern's players following Wednesday's 2-0 Champions League win over Arsenal, Guardiola stressed the importance of a fresh mind and confirmed that his eyes are set on lifting the trophy on May 24th in Lisbon.
"The pause is important for the head, not the legs," he continued.
"We had a lot of problems in the first seven minutes. After that, we controlled the game.
"I am coach of FC Bayern. It's a dream to win something for this club."