OK I solved mine, it was a bit convoluted to do here are the steps that worked for me:
Pebble: Forget iphone
iPhone: Forget pebble
iPhone: Turn off Bluetooth
iPhone: Quit Pebble app
Pebble: Restart watch (hold back and top button 10 seconds)
Pebble: turn watch on (back button)
iPhone: Turn on Bluetooth (but don't pair to watch at this point)
iPhone: open App and click Connect and follow instructions.
Mind you I did all these steps before but just not in a straight row one after the other like I did to make it work.