Ipswich boss Joe Royle said: "It's disappointing that they have scored two goals from only three attempts all match, whereas we could have had two players fighting for the match ball.
"We've hit the bar and missed from very close range. I can't say we played that badly, and so I'm disappointed to lose.
"We made the chances but missed them, so it wasn't a hopeless performance. We controlled the game but it didn't go out way on the night.
"We've got a big back four so I don't like losing goals from set-pieces and the second one was a free header.
"We will start again on Saturday, there is no panic as that was possibly our best performance for a few games."
Watford manager Ray Lewington said: "We needed a response after the Sunderland match, where we were lucky to only lose 4-2, so I was pleased with the performance. We rode our luck at times but worked extremely hard.
"Ipswich are a side who can cut you open. I feel Sunderland and Ipswich are the best two teams we have faced, but it will be very tight, with Wigan in there as well.
"We came to Ipswich with a big crowd behind them, with a few of our players missing so I was encouraged by the performance of my young side. We stood up and took our chances when they came our way.
"We're looking to climb up the table. We had a nice cup run which stretched the squad, so we need to get some more points between now and the end of the season to pull away from the bottom three."