Newcastle 1-2 Arsenal: Arsene Wenger says Chelsea are comfortable in title race
The Gunners are third, a point behind City, and seven behind Chelsea who have played a game fewer.
But Arsenal's run of six wins in a row since the north London derby defeat at White Hart Lane has the former Gunner dreaming of the title.
Nicholas, who played for the club between 1983-87, says a win over Liverpool in their next game would guarantee a top four finish and put them in a position to aim higher.
“They have to be more ambitious than settling for the top three,” Nicholas told Sky Sports.
“So, let’s go for second at the very least, and if Chelsea wobble then let’s take advantage of them, that’s what Arsenal can do.
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Arsenal can compete with Chelsea for the title says Charlie Nicholas
If Chelsea do slip up, Arsenal are the team with the momentum right now, not Manchester City
Charlie Nicholas
“You can only take every game as it comes now. Liverpool are up next and if Arsenal can take three points there that’ll be them out of sight.
“That would pretty much guarantee a top-four finish for Arsenal. Liverpool have to come and win and that might work in Arsenal’s favour.
“But Arsenal can’t stop at that, they have to strive for the league title. They’re not contenders right now, but you have to be ready in case Chelsea slip up.
“All it takes is a couple of draws from Chelsea for an opportunity to arise, and Arsenal have Chelsea at home still to come.”
He added: “And if Chelsea do slip up, Arsenal are the team with the momentum right now, not Manchester City."
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