What is the right thing to do in this situation?

In this situation, the traffic officer's signals override all traffic lights and signs. The officer is standing with arms extended sideways, which means that traffic facing the officer from the front and behind must stop. Since you are facing the officer, you must wait before the junction and not proceed until the officer signals you to go.

This rule ensures that traffic moves safely and orderly according to the instructions of a traffic officer, especially when traffic lights or signs might otherwise cause confusion or during special situations like roadworks or accidents. So waiting before the junction here is the correct and lawful action.