Study indications characteristic in body of water north-west of Iceland (7,6)
I believe the answer is:
denmark strait
'body of water north-west of iceland' is the definition.
I can't tell whether this defines the answer.
'study indications characteristic' is the wordplay.
'study' becomes 'den' (term for a study or office).
'indications' becomes 'marks' (mark is a kind of indication).
'characteristic' becomes 'trait' (a trait is a quality or characteristic).
'den'+'marks'+'trait'='DENMARK STRAIT'
'in' acts as a link.
Can you help me to learn more?
(Another definition for denmark strait that I've seen is " area between oceans".)