"A defeat would make it tough to pull ourselves back into the title race," he told Barca TV.
"But we are coming into the game in a good run of form and we know it's all to play for there. We all want to put in a great performance and keep our treble hopes alive.
"Madrid might just be favourites because they are playing at home, but we know in this type of game there are never clear favourites at all - anything can happen."
Pedro has scored 14 league goals for Barcelona this season.