First off: your saddle position should be determined by your legs, not your reach. If you ride with the saddle too far forward you can be putting excess weight on your hands, and you can be putting excess strain on your knees.

If that amount of seat post is right for you, you might have a very hard time sizing down to a smaller frame. I would switch to short reach bars such as Soma Highway 1, and try a shorter and/or taller stem as well. Very possibly simply a taller stem might help. Your bars aren't even as high as your saddle right now.