What is the correct course of action in this situation?

Your answer is fully correct because German traffic rules emphasize adjusting speed and readiness to react to hazards, especially when a warning sign is present. When you see a warning sign for wildlife crossing (Wildwechsel), you must reduce your speed to ensure you can stop safely if animals suddenly appear. This is to increase your reaction time and stopping distance. Being prepared to brake means keeping your foot close to the brake pedal and remaining alert, so you can respond quickly if needed. Emergency braking should only be done if a hazard suddenly appears and cannot be avoided otherwise. By reducing speed and being ready to brake, you minimize risk and ensure safer driving in potentially dangerous situations.