"We have to be realistic. Our priority is now the remaining league games and not the return in Liverpool. We can't rescue the tie now," said the former Red.
"The first half was a fairly even contest but the second was a different story.
"We tried to force our way back into the game but were severely punished twice, first for a loose ball out of defence and then on a counter-attack.
"I think you could see that at the moment we are lacking self-confidence. We gave the ball away too cheaply, too often, and had difficulty getting it back."