What is the right course of action?

In the scenario depicted, the correct actions you mentioned—allowing the cyclist to pass and forgoing your right of way—are aligned with German traffic regulations.

When you are approaching a junction where cyclists are present, traffic laws require drivers to prioritize the safety of those cyclists. Allowing the cyclist to pass ensures their safety and flow of traffic. Additionally, forgoing your right of way to prevent blocking the junction is important to maintain smooth traffic and avoid potential hazards.

It is crucial to recognize these responsibilities, as they help foster a safer road environment for everyone. By making these choices, you not only comply with the law but also contribute to the overall safety and efficiency of traffic.