Khadija ‘Bunny’ Shaw had headed the visitors into an early lead at Meadow Park, with City carving out further chances in a dominant first half display.
But Arsenal responded after the break, grabbing two quickfire goals through Frida Maanum and Katie McCabe to turn the game on its head.
And while Taylor insisted there were plenty of positives to take from the performance, particularly in the first 45, he felt City should have come away with something to show for our efforts.
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“I think first half was probably as good as we’ve been, we played some top football,” he said.
“We didn’t see enough of that probably in the second half and should’ve scored more when we had the momentum.
“Sometimes if 1-0 has to be enough, then it has to be enough.
“It’s frustrating, and a real opportunity we’ve not been able to take.
“[But] there’s a lot of positives to pick out of the play we had and the performances.”