In forex trading, a pullback refers to a temporary reversal in the direction of an underlying currency pair’s price movement. It is also known as a retracement or a correction. A pullback occurs when the price of a currency pair moves in the opposite direction of the prevailing trend, typically after a period of strong price movement. It is often seen as an opportunity for traders to enter a position in the direction of the overall trend at a better price. The extent and duration of a pullback can vary, and it can be difficult to predict the exact point at which it will end and the trend will resume.