How are you calculating your percent body fat? The reason I'm asking is because I'm currently lower than that percentage wise even at the weight I'm at now and we're the same height.
Even by height/weight charts, you are maybe 15 pounds over your ideal weight. I'm not sure how that could calculate out to 32.5% body fat. If you're basing it on what a scale says, those are notoriously inaccurate. A better way to calculate it is using measurements (neck, chest, waist, hips, thighs) or having someone who really knows how to use them calculate it with calipers. You may want to have that body fat percentage checked again and base your goal weight on that. HTH


edit: I did a quick BMI calculation from another site and came up with 24.6 as a BMI...not too bad. If you got down to 120 that would give you a BMI of about 21...excellent.