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Arsenal must maintain the performance they showed in the EPL, now they are still fighting in the group stage to secure first position in group B. Arsenal is still superior compared to the three other clubs in Group B. Lens, Sevilla and PSV Eindhoven are not as strong as the top teams in the EPL. Arsenal strength this season will be tested by other strong teams from different leagues. Arsenal needs to avoid stronger opponents in the round of 16 by winning group B.
Arsenal meeting with Real Madrid will probably take place in the quarter-finals or semi-finals if these two teams are able to survive in the UCL. It's hard to guess who is stronger between the two because Arsenal has also managed to beat Manchester City in the EPL.
So far I'm not sure Arsenal will qualify for the last 16 by leading group B, but that could still happen if they manage to avoid dropping points in the next four matches. Arsenal have already suffered defeat against Lens, while they will travel to Sevilla after their match against Chelsea in the Premier League.
Arsenal were certainly convincing in the group stages, but they can never underestimate anyone because they could lose like they did against Lens. Sevilla is a good team even though they haven't won a match, so they will definitely try to play and get maximum points at home in the next match. This means Arsenal must be careful about the possibility of a bad result regarding the match, the possibility of Arsenal losing remains.