What is the correct course of action in this situation?

In the given scenario, the key actions involve paying close attention to pedestrians and adjusting your speed appropriately.

1. Watching the pedestrians closely is crucial because it helps you anticipate any sudden movements they might make, especially if they are waiting to cross the street. This reflects the importance of vigilance in protecting vulnerable road users.

2. Reducing speed and preparing to stop if necessary is a vital action when navigating areas with pedestrian crossings. It ensures that you can stop in time if pedestrians enter your path, aligning with German traffic laws that prioritize pedestrian safety, particularly at designated crossing areas.

The correct approach requires both watching pedestrians and being ready to slow down, as these actions collectively promote safe driving and reduce the risk of accidents in pedestrian-heavy zones. Ignoring or only partially implementing these actions can lead to dangerous situations for both the driver and pedestrians.