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Eoin Morgan denies England's World Cup hopes are in jeopardy after their third loss of the tournament to Australia at Lord's.

Under-the-pump England captain Eoin Morgan denies his side's World Cup hopes are in jeopardy after they lost to Australia by 64 runs at Lord's.

The pre-tournament favourites were comfortably beaten by the defending champions to sink to a second successive defeat after going down in a shock loss to Sri Lanka last Friday.

It was the team's third loss of the tournament after they were defeated by Pakistan at Trent Bridge earlier this month.

However, Morgan did admit his side's confidence has taken a knock after their much-vaunted batting line-up was destroyed by left-arm tearaways Jason Behrendorff and Mitchell Starc, who took nine wickets between them.

The hosts are in fourth place in the standings and now must beat third-placed India or second-placed New Zealand to secure a spot in the last four of a tournament many expected them to win.

"I think it (confidence) will take a little bit of a hit," Morgan said.

"But I certainly don't think it's knocked anybody in the changing room. Normally when we lose games of cricket, like I mentioned yesterday, we go back to what we do well. We'll still strive to do that for Sunday's game.

"The chances are in our hands.

"Everything is within our control. We just need to produce a performance worthy of winning either one or the next two games."

Morgan bristled at a question suggesting England have a mental block about facing Australia in World Cups.

He also crankily dismissed claims from Behrendorff that his bowlers bowled too short early in the Australia innings, with Aaron Finch and David Warner taking advantage by putting on 123 for the first wicket.

It was 27 years ago that Australia last tasted defeat to England in a World Cup, in Sydney in 1992.

Tuesday's loss was all the more jarring for Morgan's side, who had won nine of the previous 10 meetings between the sides.

"Of course he did," Morgan said when told of Behrendorff's claim.

"Early on, I don't think we did bowl short.

"I've just been shown a highlight reel of short deliveries in which poor shots were played.

"They were supposed to be short. They were aimed at guy's shoulder or armpit. I thought we didn't have a little bit of green early.

"We made Australia play and miss a lot. But that's his opinion and he's entitled to it."

England face India at Edgbaston on Sunday.