Apple watch will not pair to iPhone 5s for the first set up

I am trying to set up my Apple Watch with my iPhone 5s. This watch is second hand but has been factory reset. As I try to pair, I've tried both auto and manual to the same result, I get to the software update section and it tells me I am up to date but doesn't give me a next step or an option to go to the next step. The only thing I can click on on my phone is a Cancel button that makes me start the whole process over. On my watch it tells me to follow the instructions of my phone. Any help is greatly appreciated!