City spurned several good opportunities in Monza, where Chloe Kelly had her second half penalty saved and Barcelona proved clinical in attack to build a healthy lead ahead of the second leg.
Taylor felt his side were guilty of conceding too many chances against the Spanish outfit and came away thinking we should have scored an away goal which would have proved vital.
“I was disappointed with the chances we gave away,” he told mancity.com afterwards.
“The game is about both boxes and normally with the number of chances we have had, we would have scored goals and I think it was important to get a goal today.
“More so I think it is disappointing to give the goals away. There are areas we can improve on.
“For one reason or another today, we didn’t quite click in front of goal, but the chances were there for us and it is something we’ll work on.
“[It’s a] Quick turnaround for Reading at home on Saturday and then we’ll make sure we’re ready for next week.”
Hear the boss' thoughts in full via the video above.