reassurance please

[Ivebeenaroundtheblock]

weight steady at 174 since the end of January. since February I've been limiting my food to 1200 calories a day and increasing my activity (walking hilly terrain achieving 6,500 steps a day)
my smart scale tells me my body fat has gone down. muscle mass gone up as well as my body water.
now the scale measures all this from the bottom of my feet....honestly am i doing okay? or deluding myself?
age 60, height 5'3". aiming to loose 14 lbs and to stay at 160 for a year then try to reduce to 150 and ultimately 140.