Hang in there - the body does weird things! Focus on the weight you have lost, because for real, that is GREAT! Think about it, what you HAVE accomplished thus far is losing almost 1/3 of the weight that you gained. A healthy weight loss is an AVERAGE of 1-2 pounds per week, and your current loss falls right at 1 pound a week. It may not sound like much, but that is the right rate to be at if one wants to lose the weight and keep it off.
It didn't appear overnight, and it won't disappear overnight, either, so stick with it and remember that slow and steady does win the race! Don't compare yourself to others' progress or the infomercials you see, either! Your journey is *your own*.
I think you're on the right track with starting to exercise! Remember with that, that you can lose inches and gain muscle, which results in the scales not showing a loss. My suggestion is to take your measurements and keep up with them, once a month or so. Upper arms, chest, waist, hips, thighs. You should start to see a difference!