I've never been to Iceland but know many people who have. My one friend who spent a long weekend there said that it was very Euro-hip, she said that she kept seeing women on the street with great haircuts and so she desperately wanted to follow them and find out where they got it cut!
I'm afraid that I don't have any specific suggestions but I hope this helps a little!
__________________
“Ginger Rogers did everything Fred Astaire did. She just did it backwards and in high heels.” Ann W. Richards
but seriously, don't sweat it. just be comfortable... and when you go if you really love the style check out local shops and take queues from people watching on fun trends and stuff.