I get where your comming from, I think one should head into a cycle as fit as possible. However, the differenct between 12 and 10% bf is not really a good indicator of how well positioned you are to take advantage of that cycle.
#1. Losing the extra 2% may make it much easier for you to guage the effects of your training, diet, and cycle, and to make it easier to assure you are properly balancing the three - especially diet. The benifit of losing the extra 2% in my mind is that it'd be easier to control fat gain while still maximizing muscle gain durring the cycle.
#2. However, you may be in a better position to bulk if you concentrate on strength and natural bulking now. You if your intention overall is to add a good deal of size, why limit that option now just because you are not on gear?
Personally, I think that if your goal is simply to pack on mass and to get as big as possible, the shortest route is number 2.