What is the right course of action now?

You selected both getting ready to brake and watching the cyclist closely, which is correct. In this situation, you must be especially cautious because the cyclist may suddenly enter the roadway. By being prepared to brake and carefully observing the cyclist, you can react quickly if they move into your path. Shifting left is not appropriate, as it may endanger oncoming traffic or is unnecessary in this scenario. Always be alert when you see vulnerable road users, especially near crossings or the edge of the road. This helps you respond in time and avoid accidents.