Jordan Henderson and Philippe Coutinho scored from distance either side of Edin Dzeko’s well worked goal as City’s Anfield hoodoo continued.
The champions have not won in 13 visits to Liverpool and are now five points behind leaders Chelsea having played a game more.
Pellegrini said: “I think they scored two beautiful goals, both from the edge of the box and impossible for Joe Hart to save.
“It was a close game, we had chances - David Silva, Kun hit the post and had another chance.”
When questioned about his decision to go with a 4-4-2 formation Pellegrini added: “It was the best decision. In the first half it was a close game.
“When they won the game we were playing with just with one striker so that wasn’t the problem.”
The task of defending the Premier League title now becomes more difficult, with just 11 domestic games remaining for City.
But given last season’s comeback title win Pellegrini is determined to keep battling.
He said: “It’s three points less, when we drop points it’s difficult to try to reach the top of the table.
“We must try to continue, to win the next game and as many games as we can, and we’ll see where we finish.”
Book now for City v Leicester
Midweek football is back at the Etihad Stadium on Wednesday as City face Leicester in the Barclays Premier League.
With City aiming for a third Premier League title in four years and Leicester looking to climb off the bottom of the table, this is sure to be an unmissable clash.
There’s also a chance you’ll see our new signing Wilfried Bony in action - will this be the night he scores his first City goal? The game isn’t being televised in the UK, so there’s only one way to find out!
There are only six home Premier League games to go and we need your support every step of the way... see you at the match!
