Maybe you should just lower your rear sight a little......
I think you are spot on.Like @missiledefender said, your shots look a little strung out, vertically. With that being said, the group is consistent enough to indicate that the 7 o'clock position is a sight adjustment issue. You should move the rear sight up and to the right. Continue working on making the group more consistent from there with plenty of dry-fire training.
ThisI was always taught to exhale a bit, then hold and shoot. More relaxed that way.