Chelsea skipper John Terry has fired a warning to the Premier League and the rest of Europe, insisting Chelsea have yet to hit top gear despite their fine start to the season. Carlo Ancelotti's side are not only through to the knockout stages of this season's Champions League as group winners with a game to spare but are also five points clear at the top of the Premier League ahead of Sunday’s showdown at Arsenal. Terry is pleased with the way things have gone so far this term but, in an ominous warning to the rest, he believes there is much more to come from the Blues. "The momentum, the way we're playing and the confidence can only take us in one direction and that's forward," the England star said. "We can work better and will find solutions from where we've gone wrong."  Terry admits that finishing top of the pile in their Champions League group may not help them in the next phase with the likes of Barcelona, AC Milan, Inter, Real Madrid and Bayern Munich all possibly set to finish second in their groups and therefore enter the hat to face Ancelotti’s men next. The Blues skipper added: "We will regroup after the group stage and look forward to the draw, although it looks like there could be a difficult draw because there will be a number of big teams finishing second."