Go for the cut so you're at least 10% and then leave yourself there for 2-4 weeks so your body has some time to get used to being this lean and you can start to maintain/build strength.
From there maybe look to try the ABCDE diet -
http://www.tmuscle.com/free_online_arti ... generation" onclick="window.open(this.href);return false; although I wouldn't bother adjusting training too much as they outline.
I tend to sway towards this style of diet naturally as I make subtle adjustments over 5-7 days but I don't make big enough swings in calorie intake to really warrant calling the differences distinct bulk and cut mini cycles as the differences may only be 200 calories at most.
So during the bulk cycle I'll eat pretty much as normal with carbs through the day and evenings while with the cut cycle I'll remove late afternoon and evening carbs and replace with more green veg and salads. The calorie change is subtle but enough to promote a small deficit and some fat loss.
I find this is enough to promote small amounts of fat loss without loss of strength or any real muscle mass and it's more likely to stay off due to the slower nature and the body not really thinking it's in a constant of starvation. It's also less likely to play havoc with blood sugar levels, depeding on your macro's, so is another advantage.