I have seen some chassis dyno charts of HO 302 's in mustangs. I believe these have the iron heads and a pretty mild cam. They are making about 230Hp at the wheels.
Anyway they completely run out of steam at about 5000 revs. The power curve just drops right through the floor starting at 4600 or so.
People tell me that it is a combination of cam timing, head flow, CR, and valve springs with the first recommended change being springs. The stock springs just don't have enough opens seat pressure to control the valves much beyond 5000 revs. This along with the cam and small valves in the iron heads pretty much limit the effective power band to less than 5000.
I have a 345HP alum head SVO 302 in my car. It has had a little pocket porting and 1.94 1.54 valves in them with stock springs (same as yours). The headers are as free flowing as can be done with mufflers and I am running a 750 DP Holley and RPM performer intake. The MSD dis and spark box are set to have the advance all in, 34 degrees, at 2400 RPMs. On the same chassis dyno I am making 294HP at a little bit above 5100 revs. At 5600, it is down to 250HP. The engine has been very carefully ballanced with a steel crank, ARP rod bolts on stock rods and pistons reringed with good rings. CR is right at 9.1 to 1.
I shift at 5300 and set limiter to 6000. It's faster that way. In your case I would limit revs to 5000 and shift just before the limiter comes on.
Beware the stock valve springs above 5500 and the stock rod bolts above 6000. Spinning it up it beyond that with a stock ballance job is asking for it. If a rod bolt goes, kiss it all goodby.