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This thread is resolved. Here is a description of the problem and solution.
Problem: My pages default language is english. In WP Settings -->General it states it is english US althogh my flag is ENGLISH UK. WP Settings does not let me change the sites language to english UK. It wont apply the changes I have saved.
Solution: It's possible to change the language settings on WPML > Languages > Site Languages > Edit Languages. You can edit the "Default locale" column.