Here is my code:

viewDidLoad:

UIPinchGestureRecognizer *pinch = [[UIPinchGestureRecognizer alloc]initWithTarget:self action:@selector(pinch:)];
[self.canvas addGestureRecognizer:pinch];
pinch.delegate = self;

UIRotationGestureRecognizer *twoFingersRotate = [[UIRotationGestureRecognizer alloc] initWithTarget:self action:@selector(pinchRotate:)];
[[self canvas] addGestureRecognizer:twoFingersRotate];

twoFingersRotate.delegate = self;

Code For Pinches and Rotates:

-(BOOL)gestureRecognizer:(UIGestureRecognizer *)gestureRecognizer shouldRecognizeSimultaneouslyWithGestureRecognizer:(UIGestureRecognizer *)otherGestureRecognizer
{
    return YES;
}

-(void)pinchRotate:(UIRotationGestureRecognizer*)rotate
{
    SMImage *selectedImage = [DataCenter sharedDataCenter].selectedImage;

    switch (rotate.state) 
    {
        case UIGestureRecognizerStateBegan:
        {
            selectedImage.referenceTransform = selectedImage.transform;
            break;
        }
        case UIGestureRecognizerStateChanged:
        {
            selectedImage.transform = CGAffineTransformRotate(selectedImage.referenceTransform, ([rotate rotation] * 55) * M_PI/180);
            break;
        }

        default:
            break;
    }
}

-(void)pinch:(UIPinchGestureRecognizer*)pinch
{
    SMImage *selectedImage = [DataCenter sharedDataCenter].selectedImage;
    [self itemSelected];

    switch (pinch.state) 
    {
        case UIGestureRecognizerStateBegan:
        {
            selectedImage.referenceTransform = selectedImage.transform;
            break;
        }
        case UIGestureRecognizerStateChanged:
        {
            CGAffineTransform transform = CGAffineTransformScale(selectedImage.referenceTransform, pinch.scale, pinch.scale);
            selectedImage.transform = transform;
            break;
        }

        default:
            break;
    }
}

My rotation works great on its own and my s

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