Scotland's 3-0 defeat in Holland on Saturday night leaves them joint second in Group Nine with Iceland - who boast better goal difference - ahead of Wednesday's clash at Hampden.
The match is being billed as a must-win for Scotland boss George Burley, who knows he must produce the goods in their remaining home matches after now conceding points to Macedonia, Norway and Holland.
Gunnarsson would love to see Iceland take all three points but believes a
share of the spoils would be a satisfactory result for the visitors.
"I would take a draw but we always have to think positive so we have to think we can do it," said the Coventry City midfielder.
"The pressure is all on Scotland. Definitely. They are the bigger team, with the better players so the pressure is on them.
"We are the small team in this group."
Keen to play down his own side's chances, Gunnarsson did not believe the defeat in Amsterdam would damage morale in the Scotland camp too much.
"Holland are a good team, they are a big team," he pointed out.
"It's difficult for any team to go there. We went there and lost 2-0 against to them over there. They played us off the pitch. Scotland will be up for it on Wednesday."
"It's definitely going to be a hard game," he added.
"Scotland have much better quality in their squad than we do. They have quality strikers. Darren Fletcher is also a quality player.
"But we just have to be prepared and concentrate on our own game.
"Scotland are favourites for second place but we will see. We just have to concentrate on ourselves and see what happens."