your story sounds a lot like mine this time around.
i had gd with my first but, like you, i controlled it with diet and exercise.
this time i also couldnt get my fasting numbers in check so i am on insulin only at night. my midwife has said that they won't let me go past 40 weeks...and i am currently at 36. i really don't want to be induced. last time i had my daughter naturally at 40w and a day. ugh.
my plan is to try all the tips i've heard for natural induction when i hit 39 weeks...evening primrose oil, sex, walking...whatever it takes to get this baby to come out without medical intervention.
i know i will have an ultrasound at 38 weeks to check the size of the baby. maybe if it is small enough they will let me have a bit of extra time...
they are also making me have 2 NSTs a week...are you?
out of curiosity - how much insulin are you taking at night?