In this situation, are you obliged to observe the cyclist's behaviour?

In the video, you are driving along a street through the market square of a small town, where cars are parked on the left, and one of them is just pulling out of a parking space; a cyclist is coming from the opposite direction on the left side of the roadway. You are obliged to watch the cyclist's behaviour. The answer is: yes.

The Road Traffic Act requires every road user to be careful and to avoid any action that could endanger road safety; the principle of limited trust lets you count on others obeying the rules only when the circumstances do not suggest otherwise. A cyclist is a road user you need to watch particularly closely: riding next to parked cars, they may suddenly swerve towards the centre of the roadway to go around an opening door or a car pulling out, wobble or stop. When passing an oncoming road user, the Act requires you to keep a safe distance from them and, if necessary, move to the right and reduce speed or stop - and to know whether this is necessary, you must watch them. So on a market square with parked cars you drive slowly, close to the right-hand edge, watching the cyclist and the car pulling out, and you are ready to slow down if either of them moves into your path.

Legal basis: Art. 3 para. 1, Art. 4 and Art. 23 para. 1 point 1 of the Road Traffic Act (Prawo o ruchu drogowym)