What is the right course of action here?

Your answer is correct because, according to German traffic rules, when you are at an intersection without any priority signs, the general rule is "right before left." This means you must give way to vehicles coming from your right.

In this situation, the red car is coming from the right and wants to turn left, and the cyclist is on your left. Since you are going straight and neither the red car nor the cyclist is coming from your right, you have the right of way and may proceed first.

Always remember the rule: If there are no traffic signals or priority signs, the vehicle approaching from your right has priority. This helps determine who proceeds first safely.