Cannot set up iwatch series 2

I have recently taken out my iwatch series 2, clearly needed updated and once I started this, I was no where near any further 5 hours later!

my watch can sync with the iPhone and it says updates complete but it goes no further than this ( see pic) iwatch is just stuck waiting for me to proceed setting up on the phone. So I’m updated and nothing else. Tried resetting phone and watch, both up to date, tried toggling Bluetooth on and off.. nothing. Any help greatly appreciated.