Gareth Taylor’s side suffered their first defeat in Group B as Ona Batlle’s late strike secured a 2-1 victory for the hosts at Leigh Sports Village.
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Vicky Losada got City off to a dream start when she arrowed into the top corner from 20-yards in the second minute, but Ivana Fuso levelled on the half hour mark with a close-range finish.
It sparked appeals from the visitors, who felt Karima Taieb had the ball kicked out of her hands in the build-up, but the referee was unmoved.
Chances were at a premium in the second half and with a penalty shootout to determine who gained a bonus point looming large, City conceded an agonising second eight minutes from time as Batlle converted from six-yards after a superb save from Taieb fell kindly for her.
The result leaves City top of Group B on six points, with United one point behind in second place, but with a game in hand.
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