Forest moved up to fifth place with a 2-0 home victory over stuttering QPR on Boxing Day after drawing their previous two games.
Sixth-placed Leeds are unbeaten in five matches, but they have drawn their last two against Barnsley and Blackpool. A win for Brian McDermott's side would ensure they replace Forest in fifth spot heading into 2014.
Leicester City moved back to the top of the table with a 1-0 win over Reading and Nigel Pearson's side entertain Bolton Wanderers on Sunday.
The leaders are two points clear of second-placed Burnley after David Nugent's penalty saw off Nigel Adkins' side, while Bolton travel to the Midlands on the back of a 1-0 win at struggling Barnsley.
QPR were the pre-season favourites for the title, but back-to-back defeats against Leicester and Forest have seen Harry Redknapp's side drop down to third.
Watford will fancy their chances of heaping more misery on Rangers at Vicarage Road on Sunday after they thrashed 10-man Millwall 4-0 on Thursday, a result which resulted in Steve Lomas' sacking at The New Den.
However, Steve McClaren's side will fancy their chances of securing an eighth away win of the season when they travel to bottom side Barnsley.
