Losing overall body fat will lean out and improve your chest. Improving strength is a matter of how you structure your workouts. You should post a thread on the forum with your diet and your workout routines along with your stat's and goals and I, alongside others, will be more than happy to help you out.
Looking at that picture you are pretty lean so I would say bulk but it depends on what your goals are. Do you want to be bigger? Stronger? More ripped?