Goals from Britt Assombalonga and Tommy Rowe condemned the Gills to their second defeat in four days but Taylor believes his team has it in them to reach safety after a spirited performance.
"We need to get a couple more wins and I feel we have that in us," he said.
"We might have asked a few more questions of Peterborough if we had shown a bit more belief on the ball.
"We looked a threat for much of the game but we were hurt by giving away a very disappointing goal late in the first half.
"A wonder goal followed in the second half and we then lost a bit of discipline as Peterborough also got a penalty.
"I can't complain about the way the boys battled on through for the remainder of the game. We have to remember we were beaten by a very good team."