Brake pad knock - off - 68 S1.5

[Threadbear]

I am suffering from a long brake pedal, which is fine after the first application each time. When off the brakes there is slight play in the front pads, and i can see a small gap, .010" maybe, on each pad. The Dunlop cylinder assemblies are about 4 years old, 2000 miles at most, new fluid and the pads are new EBC, which don't engage with the standard pad retractors. Is it normal that the pistons would retract a bit, or is it time for new seals? Or maybe someone could make another suggestion. Thanks