Liverpool have the Christmas present they were looking for after Manchester City surprisingly fell to their second league defeat in three games. Jürgen Klopp and his players can now enter the festive period four points clear of the defending champions at the top of the Premier League. While one point separated the frontrunners City could look forward to rectifying the situation when Liverpool come here in the new year; now there might be little they can do if their unbeaten rivals maintain their impressive run of results.

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City were unrecognisable for large parts of the game and not just because key players were injured or rested. They were unimaginative going forward and sloppy in defence, with Kyle Walker having a game he will want to forget. That is to take nothing away from Crystal Palace, who were organised and effective at both ends and thoroughly deserving of three important points.

“When we score three goals away from home I think we can say we deserved it,” the Palace captain Luka Milivojevic said. “Andros Townsend’s goal was amazing.”

City’s captain, Fabian Delph, accepted his side had not been at their best. “Palace were stubborn and organised but we started too slowly,” he said. “The ball was not zipping about.”

That was certainly true, for the shock of the season took a while to get going, even if a late City goal ensured a dramatic finale. The first half-hour was a test of patience. Palace were content to keep men back, challenging the home side to find a way through, while City’s efforts to make their wealth of possession count were hampered by their being without the spark of ingenuity that David Silva or Kevin De Bruyne would normally supply.

Facebook Twitter Pinterest Townsend lets fly from long range to beat Ederson. Photograph: Matt West/BPI/REX/Shutterstock

It was one of those tepid encounters that needed a goal, though after City finally supplied one after 27 minutes the script took a wholly unexpected twist. Not only did Palace hit back almost straight away, within nine minutes of going behind they were in the lead after Andros Townsend beat Ederson with a delightful left-foot volley from 20 yards out.

First things first though. City would not have seen any of that coming when Ilkay Gündoğan strode through a static defence to reach Delph’s cross and beat Vicente Guaita with a firm header. The midfielder ended up unopposed on the six-yard line but had remained onside – the Palace defenders simply failed to pick up his run.

Facebook Twitter Pinterest Dejection for Ederson and City. Photograph: Oli Scarff/AFP/Getty Images

The visitors’ only serious threat by that stage had come after six minutes, when John Stones took on a little too much in attempting to justify his selection in midfield and almost presented Wilfried Zaha with an opportunity after being caught in possession in his own half.

City could have done with Stones to help out in defence when Palace equalised six minutes after Gündoğan’s goal. Zaha got the better of Aymeric Laporte on the right, then as the ball was transferred across the edge of the area Jeffrey Schlupp found room to get round Walker and make space for a shot past Ederson.

Before City had a chance to reply they were suddenly behind and again there were questions to be asked of the defence. A free-kick into the area was not properly cleared and after two weak headers in succession from Gündoğan and Bernardo Silva the ball reached Townsend just outside the area. The winger returned it with a spectacular volley into Ederson’s top-left corner.

“It sat up perfectly,” the scorer said. “I knew I couldn’t take a touch as City would have been on me and away on the counter.”

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Pep Guardiola’s response was to send on Sergio Agüero early in the second half, not for the ineffective Gabriel Jesus as might have been expected, but for Nicolás Otamendi. That meant Stones was back in his usual position just in time to see Palace extend their lead.

Aaron Wan-Bissaka took on the defence down the right and from his cutback Townsend was unlucky to see his header strike a post. Walker was overzealous in trying to clear the rebound, jumping in to a tackle and catching Max Meyer in the area, allowing the reliable Milivojevic to score emphatically from the spot.

That prompted De Bruyne’s arrival on a rescue mission for the final half-hour, with Riyad Mahrez following him on to the pitch a few minutes later.

Until the closing stages the nearest City came to a fightback was a Leroy Sané free-kick that struck an upright, though when De Bruyne beat Guaita five minutes from time with a dipping shot that looked suspiciously like a cross, the crowd woke up to encourage their side to retrieve at least a point.

The best chance of City’s final push came in stoppage-time when what was definitely a De Bruyne cross found Jesus on the six-yard line, only for the Brazilian to head over.

One heroic block by James Tomkins to deny Gündoğan later, Palace had their victory and a sorry week for Manchester managers was complete.