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To me, no it doesn’t look too big. I have 7” wrists as well and feel that 39mm is my “sweet spot” but I really enjoy 42mm too. I think that watch looks really good and fitting for your wrist. Also, wrist shot pics always make the watch look bigger than it is. My 34mm watch in a wrist shot looks so much bigger in picture than in person.
sorry for this low quality pic. It’s a still of a video.
And 34mm
Looks good to my eye, even though it’s a relative close up pic that normally makes the watch look even bigger. There’s no lug overhang and the bracelet curves round versus goes straight down.
All very personal though so make sure you’re happy with it, and not just randomers on the internet. For ref here’s mine on a slightly smaller wrist:
Looks fine to me, here is my 42mm speedy on a 6.75 wrist (albeit quite a flat wrist).