The final kilometre served up a 4% incline to the finish in Manosque, Pedersen looking in no huge hurry on the right side of the road with Mohorič glued to his wheel.
The gamble by Mohorič did not work, as Pedersen jumped with 300 metres to go and he easily crossed the line for his first victory of the season, three seconds ahead of his breakaway companion.
Fred Wright (Bahrain Victorious) used a strong kick on the final stretch to grab third, just ahead of Dorian Godon (Decathlon AG2R La Mondiale) in the reduced peloton which crossed the line in Manosque 16 seconds back.
The duo stole away from a reduced peloton with 18km to go. Pedersen earned 15 bonus seconds during the stage and for his win and so took the race leader's jersey from Sam Bennett (Decathlon AG2R La Mondiale).
The Dane now has a 13-second margin over Mohorič and 24 seconds over Wright in the GC with one stage to go.
"When you have a strong group behind pulling, chasing you, it's never safe until you pass the finish line. So I would say the last 'k' I was sure we would sprint for the victory, but you are never sure," Pedersen explained.
"I know I'm in good shape and it was a nice feeling today. This stage suits me very well, with the climb. It was our plan to go really hard and try to be a small group on the top. The plan succeeded and we are really happy. We got what we came for, to at least have one stage victory."
The Tour de la Provence concludes Sunday with a 190.6km route between Rognac and Arles, a flat stage with only one classified climb in the opening section, suited to the sprinters.
The final places on the podium will be decided by the time bonuses awarded during the stage and especially at the finish.
How it unfolded
It's only 23km between the start and finish in Forcalquier and Manosque, so the 167.3km stage twisted around Provence with sweeping roads through forests and resting lavender fields, and periodic views of a snowcapped Mont Ventoux in the distance.
On the docket were three classified climbs enclosed by two intermediate sprints. The final ascent, a category 1 at Col de l'Aire dei Masco (6.5km, 4.8%), provided an 8km descent into the final sprint at La Bastide des Jourdans, leaving 17 rolling kilometres to go.
Pedersen attacked with 30km to go, but Jefferson Cepeda (EF Education-EasyPost) and Sander De Pestel (Decathlon AG2R La Mondiale) kept him in sight under the tree-lined climb and soon joined the pacesetting with the Dane.
A group of six - Bahrain Victorios duo Matej Mohorič and Fred Wright, Ewen Costiou (Arkéa-B&B Hotels), Marco Tizza (Wagner Bazin WB), Toms Skujinš (Lidle-Trek) and Lukáš Kubiš (Unibet Tietema Rockets) chased them and were just 10 seconds back.
Once the two front groups crested the final climb a reduced peloton formed 30 behind but race leader Bennett faded from the back of the bunch, with 25km to go.
Pedersen drove the pace in the breakaway, even asking the television camera for Cepeda and De Pestel to pull through and do more work. With just 20km to go, the chasers were only 20 seconds back, with everything to race for.
Pedersen easily took the final bonus second at the intermediate sprint, knowing they could be precious in the overall classification on Sunday.
When the six chasers bridged across to form a formidable group of nine, Lidl-Trek and Bahrain Victorious each had a pair of riders and a tactical advantage.
Mohorič didn't waste time and surged ahead. Pedersen latched on to his wheel as the duo took off and quickly opened a 14-second gap.
With 10km to go, the race changed complexion altogether as the peloton swept up the seven chasers.
But Mohorič and Pedersen went all in and worked together. The chase peloton committed to closing down the 40-gap to the front duo, with EF Education-Easypost setting the pace and Lidl-Trek riders trying to disrupt their work.
The final kilometres were on rolling roads but Mohorič and Pedersen rode at 50km/h, determined to stay away. They did by just 12 seconds but it was enough for Pedersen to win and for Mohorič rise to second overall and still with a chance of final victory.
Jackie has been involved in professional sports for more than 30 years in news reporting, sports marketing and public relations. She founded Peloton Sports in 1998, a sports marketing and public relations agency, which managed projects for Tour de Georgia, Larry H. Miller Tour of Utah and USA Cycling. She also founded Bike Alpharetta Inc, a Georgia non-profit to promote safe cycling. She is proud to have worked in professional baseball for six years - from selling advertising to pulling the tarp for several minor league teams. She has climbed l'Alpe d'Huez three times (not fast). Her favorite road and gravel rides are around horse farms in north Georgia (USA) and around lavender fields in Provence (France), and some mtb rides in Park City, Utah (USA).
