Steven Gerrard missed a penalty before West Brom grabbed two late goals.
Liverpool boss Brendan Rodgers has described Monday's home defeat at the hands of West Brom as a "setback" in their hunt for European football.
The defeat leaves the Anfield side 12 points adrift of fourth placed Spurs and eight behind fifth placed Arsenal.
Liverpool dominated the Baggies on Monday night but late goals from Gareth McAuley and Romelu Lukaku denied them a share of the points after Reds captain Steven Gerrard had missed a penalty, leaving Rodgers disappointed.
"It's a setback," said Rodgers. "We see our home games as real opportunities, especially in the form we're in."
He added: "The effort was terrific, but the ball never fell for us. We probably should have got more from the game."
Liverpool have a chance to close the gap on Sunday as they host Swansea in the only Premier League fixture of the weekend, due to the FA Cup fifth round matches.
Liverpool can be backed at 1.57 to see off Rodgers' former side at Anfield.
The Swans are 6.00 to inflict a second successive defeat on the Merseyside outfit and the draw is 4.00.
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