theres other comments that explain parrying so ill just quickly touch on progression: Youre going the right way. Cleric Beast is optional but id recommend fighting him as it explains another major boss mechanic in the game (youll figure it out) after that, just explore Cathedral Ward. Theres closed gates and an item you can buy in the shop to open them but id recommend not doing that. Explore, and youll find another area thats theoretically optional but it would be funny to see your reaction to that areas boss and once youve beaten her, you can go back and open those gates (more or less)
parries are timed like other souls games, you press the button just before the attack lands. Afterwards you should walk up close and tap light attack and it will do a visceral attack which gives you i-frames and does massive damage
i said to shot BEFORE the attack connects,also NEAR them and press r1,all you did was a normal attack not a visceral attack. missed an npc up there where you was,also you missed a gem in gascoin area on the roof