I'm still a noob at this by forum standard so take this for what it's worth. If you move the peep down, itWILL cause the point of impact to go down. To move it up you'd have to move the peep up on the string. This means that you will also have to adjust the pin sight in an upward direction freeing up the space you want. The only thing I see wrong with this is that it will change how you have to anchor or the position of your head when shooting. But, nothing a little practice can't get you used to.

Thanks for the correction JOE.