Goals from Steven Watt and Alan Connell sealed a 2-1 win at Blundell Park to move up to ninth in the Blue Square Premier table.
"It's the best football we've played this season without a shadow of a doubt, I'm very pleased for the players as they've taken a bit of flack," said Woods.
"The only thing we didn't do is turn enough of them into goals, I'm really pleased with the character that they've shown. It was a potentially anxious game as Wrexham were on a great run and we weren't, but they responded in exactly the way we wanted them to.
"The last time we played against three in the middle was Fleetwood and that caused us problems, but this time we dominated it. Very pleased with the composure and the quality of football played at times."
Woods singled out goalscorer Steven Watt for praise, even though he had to be replaced due to a groin strain.
"It sums up the way Watt has been playing, he has been comfortably the best player for us over the past three or four games," he added.