So you lost 7lbs straight away, and then put some back on, no biggie really, I lost 5lbs in 2 days and put it on in one Proabably just water weight and re-adjustment and adding some muscle. People that lose loads fast straight away normally have a crap-ton to lose (I lost fast straight-away but I was 19st 3lbs, and that's a FB by anyone's standards)
Sounds like you have the excesise dialed in too, cycling does the move slowly, you only need to lift heavy 1-3 times a week, not everyday, you won't get gains if you don't allow the body to rest, you can always incorporate the sprints on the way home on the bike.
You will lose fat as long as you are in a calorie deficit, but give this way of eating a chance to work, how much better you will feel is worth it. If the weight loss dosn't start after a month or so then start tweaking, some people find they need to cut nuts, or dairy, or really reduce fruit to lose weight, others find then need to change their ratios of fat/carbs/protien arround.
You know all those pictures of Adam and Eve where they have belly button? Think about it..................... take as long as you need........................