Honestly....16% is perfect to make gains in my opinion......10% is visible abs, and from my own experiences, that 10-13% range is just too damn hard to add weight to the bar in training, you can maintain strength and cut down for a reason, but in training, I find much less than 15% or so makes it really tough to add to the bar regularly.
If I were you, I'd try to maintain the same level of bodyfat and keep getting stronger, adding more muscle......cutting is gonna frustrate you and either stall or regress your lifts.
Those lifts will go up, you need enough bodyfat to foster that though.....I am not saying 'get fat', but I think 16% is perfect to train at......how many 6' tall guys can you think of that can keep getting stronger and stronger at 170lbs? It is like you're deadset on being a middleweight, lol, but you're 4 or 5 inches too tall for the weight class.....I still say keep cals where they are and see how strong you can get/how much muscle you can build.......a 34 waist is a good measurement, man.