The Military Heraldry Society is just about to republish the cloth badge identification pamphlets compiled by its founder Major John Waring.
Pamphlet 1 covers British cloth signs and is an invaluable pocket-sized reference that would have identified the badge shown easily - it's number 284 in the guide. Although the illustrations are black and white line drawings they are still useful. Sample attached.
The whole series of 12 pamphlets covers most countries of the world.
At the moment copies are only available to Society Members for £15 so if you'd like to buy a copy go to
http://militaryheraldrysociety.com and join us online.
PM me with any questions.
Jon