Real Madrid went into last Sunday's "Clasico" against Barcelona aiming to land a decisive blow in the title race but a week later, it takes on Rayo Vallecano with serious questions over its own La Liga credentials.

Carlo Ancelotti's side followed up its controversial 3-4 defeat at the Bernabeu with an away loss to Sevilla on Wednesday, leaving it third in the standings and three points behind leader Atletico Madrid, which edged Granada 1-0, and two adrift of Barcelona, a 3-0 winner over Celta de Vigo.

Real went ahead through a deflected Cristiano Ronaldo free-kick at the Sanchez Pizjuan but was unable to sustain the lead for long, eventually going down to a pair of counter-attacking strikes from Sevilla's Carlos Bacca.

Real started brightly but as the game progressed it lost its composure going forward as it frantically sought a second goal. Sevilla, by contrast, defended solidly and was always a threat with Real looking susceptible at the back.

The pair of defeats has undermined Real's strong run since Christmas and the inferior head-to-head records against Atletico and Barcelona could yet prove decisive if there is a tie at the top of the table at the end of the season.

Able to brush aside weaker sides, Real has picked up just three points from away games against Sevilla, Atletico, Barcelona, Athletic Bilbao and Villarreal among the stronger sides, casting doubts over both its tactics and mentality.

"Obviously it is more difficult now. We are behind but it is not impossible," Ancelotti told reporters as he reflected on the back-to-back losses.

"It will affect us and it is a bit strange. I have said a lot of times that the difficult moment would arrive and here it is.

"We need character and personality from everyone so that we can respond quickly. It is tougher now as all the games are important."

Despite closing the gap at the top, there is a somber mood at Barcelona ahead of its derby with Espanyol following news that goalkeeper Victor Valdes suffered a torn knee ligament in the win over Celta and will miss the rest of the season.

"For him, the situation and what it means for us from here on, it is very bad news," playmaker Andres Iniesta said.

"Football and sport are like this. When you are playing each Sunday and Wednesday, for good or for bad, it doesn't give you time to savor moments or to have regrets. For this reason, we are Barca and we are mentally prepared to push to the limit.

"There is a month and half to go and we'll give everything."

Meanwhile, Atletico remains a model of consistency and despite leading the table, coach Diego Simeone continues to claim that his team is the outsider for the title ahead of tomorrow's trip to Athletic Bilbao.

"The lads are putting in an enormous effort and we know that it will be valued at the end. With eight games to go, the advantage is with the sides that have more resources," he said.