What is the right course of action?

You chose correctly to wait.

Here, you are facing a yield sign (give way), which means you must give priority to traffic on the main road. The cyclist on the left is already on the main road and has the right of way. You must wait until the cyclist has passed before you can turn right.

In German traffic rules, a yield sign requires you to slow down and only proceed when the way is clear and safe. Yielding to cyclists and other traffic on the main road is mandatory, even if you want to turn right.

So, waiting is the right course of action to avoid accidents and respect the priority rules.