Apple Watch and phone

I have had my Apple Watch series 4 for a while now and was connected to my iPhone X without any complains. My watch all of a sudden unpaired my phone. I updated the watch and my phone to latest software.

I try to connect my watch to my phone again and it won’t go further than pairing. My watch is stuck on “please continue setup on iPhone” phone is stuck on “software is up to date”

I have tried resetting watch and phone. I have deleted my app again and again. I have reset my network settings on my phone and factory reset my watch!