@Griff thanks for the advice.
I was thinking I was not moving the viewer around the composition very well either. As I did my final sketch, I changed the dynamic by moving the eyes of the characters.
I think it is working better to move the viewer around. The girl looking at the dragon and the dragon facing back at the book which brings you back to the girl. Let me know your thoughts.
With the dragon falling asleep it adds more story to the image as well. It feels to me that the girl is reading a story and her dragon is falling asleep because of it.