The Merseyside outfit suffered their first Premier League loss on Thursday night after Manchester City were 2-1 winners against Liverpool FC at the Etihad Stadium.
Leroy Sane scored a late winner to secure three points for the defending champions after Roberto Firmino had cancelled out Sergio Aguero’s first-half opener.
Manchester City are four points adrift of Liverpool FC with 17 games left to play in the Premier League season.
Liverpool FC will return to action with a trip to Wolves in the FA Cup third round on Monday night before the Reds travel to Brighton in the Premier League on Saturday 12 January.
Manchester City won the Premier League title with a record points tally last season but Guardiola is under pressure to win the club’s first Champions League title.
The Citizens will take on German club Schalke 04 in the Champions League last 16, while Liverpool FC will also face Bundesliga title holders Bayern Munich.
Former Liverpool FC defender Carragher believes Manchester City could be distracted in their pursuit of the Champions League crown.
“Looking at it now, four points, we’ve said since the start of the season I think City are the best team in this league,” Carragher told Sky Sports.
“I think it’s maybe 50-50, slightly in City’s favour, and I think they’ll fancy their chances.
“I think what we haven’t had for a few years is a real title race, going back even the last few years. Finally, it feels like we may have one.
“For Liverpool, yes the league is everything. But for City, it’s about more than the league.
“If Pep comes here for five years, it doesn’t matter how many league titles he wins, he will be judged on the Champions League, as he was at Barcelona. That’s the next big thing for City to do.
“If Liverpool can concentrate on the league, that might be the advantage they need.”
Liverpool FC finished in fourth place in the Premier League table last season and 25 points behind champions Manchester City.
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