I felt the same way, azul. After I'd lost 20 pounds, I felt heavier than when I started! The truth is, it took my head a while to catch up with my body. Even now, I've lost nearly 40 pounds, and I'm completely flabbergasted when certain things fit. When I'm physically putting on a pair of pants that used to be too tight, I'm still thinking "these are going to be too tight..." but they never are! I think it just takes a little while for your mind to catch up to your body. But, keep up the good work, and it'll happen soon enough. You're doing a great job!
If you think that's crazy, try losing over 125 pounds and still feeling fatter! I think it's because since we are dieting, we actually deeply care about how we look now, because let us be honest, if we had cared before, we wouldn't have let ourselves get that big in the first place. Maybe we had just been in denial too!
But it's not all of the time I feel that way. Sometimes I do a double take in a mirror, but sometimes I still feel like the fattest lump on the planet.