Liverpool crushed Newcastle at St James' Park in a victory that could have been even more emphatic - and all without striker Fernando Torres and Robbie Keane, who was left on the bench despite scoring three goals in his previous two matches.
"This is the best team I have played with," said England midfielder Gerrard.
"You look around the dressing room and, from the keeper to the forwards, we have some fantastic players. There is a confidence that we can get over the big hurdles."
We wanted more - Gerrard
The win was made all the sweeter for Liverpool fans, who are desperate for the team to add to the club's 18 League title triumphs, because nearest title rivals Chelsea drew 2-2 at Fulham.
Manager Rafa Benitez predicted two weeks ago that if Liverpool were still top after the Christmas programme, they would have "an 80% possibility" of winning the title, pointing out that "normally we have been better in the second half of the season."
The last four teams to lead the table at Christmas have gone on to be champions.
But the last - and only - time in the Premier League's history that Liverpool led the way, in 1996, they finished the season fourth.
"We have given ourselves a great chance," Gerrard added.
"If we want to stay at the top and be involved in this title race, we have got to deal with the pressure."
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