What is the right course of action now?

You answered correctly. In this situation, there is an obstacle blocking your lane—such as an accident or broken-down vehicle—so you must reduce your speed further and steer as far to the left as possible to safely pass the obstruction. German traffic rules require drivers to slow down and take every measure to avoid danger when approaching accident scenes, especially when visibility is reduced due to weather and when a warning triangle is present. Continuing as before would be unsafe. Always adjust your speed and road position to the developing situation and clearly signal your intentions. This ensures you and others stay safe, especially in hazardous or unexpected conditions.