He told BBC Berkshire: "We're all bitterly disappointed but so we can bounce back and use it to spur us on.
"We haven't had long to wait and we go there as favourites to get the job done and be professional."
Peace added that although he was disappointed to lose to Scunthorpe, there were positives from the game.
"We started off really brightly, it looked like we were completely in control of the game," he said. "They scored a controversial goal, against the run of play and that gave them a boost."
Torquay versus Reading kicks off at 1945 BST on Wednesday 11 August and is live on BBC Radio Berkshire.
Source: BBC Sport
Source: BBC Sport