Priority #1....position the engine...you!!..actually your hips in the right spot. Thats the first thing always...upper body is their just to balance out the engine and keep the air intake (your lungs)open and working to send that oxygen to your muscles.

So find where you feel the most power and comfort pedaling which looks for you like a tiny bit higher and come in 1cm at least. I say higher because when you move the saddle forward you need to make up for the distance to the pedals you just lost.

Once you can pedal sitting in the saddle then worry about the upper body. Until your hips are in their ideal spot you will never know where your upper body should be. But once you have it you should shoot for a relaxed upper body that allows for maximum breathing and doesnt focus the weight into any particular spot like hands neck or back, but instead spreads it out.

From your pics here is my total advice summarized:

1. Saddle moved 1 cm forward
2. Saddle moved 5mm-10mm up
3. Remove 1cm spacer from your stack to lower your bars. This will elongate your arms and allow you to straighten your back a little...if not get a 120mm stem and keep your current height.