What is the right course of action now?

Your selected actions to drive as far to the right as possible and to brake are correct. According to German traffic rules, when you encounter oncoming traffic on a narrow or rural road, you should move as far to the right as safely possible to allow enough space for the vehicles to pass. Braking is also appropriate if necessary to reduce speed, enhancing safety and control during the passing. Changing direction to the left would be unsafe and not allowed because it puts you into the oncoming lane, increasing the risk of a collision. This approach helps maintain clear separation between vehicles and ensures a safe and smooth passage.