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FANCY, as an adjective, is the opposite of plain. It means sophisticated, extravagant, elegantly fashionable; intended to impress; extremely skillful or graded as extremely high quality or exceptional appeal.

"Her front room reminded me of fancy hotel lobbies, there was so much silk and lace."

It can often mean:

1. elaborate in structure or decoration; decorated, ornamental, etc.

"These dresses are too casual for the wedding; I need something fancier."

2. higher than real value; extravagant, excessive or exorbitant: a fancy price.

"Designer labels tend to come with fancy prices to match."

3. unnecessarily complicated and needing a lot of skill; intricate and difficult. 

"I can't do all that fancy stuff on the computer."

4. NAm (esp. of foodstuffs) of high quality and, therefore, more expensive: fancy dishes/molasses/cookies, etc. Like canned fruit of superior size and appearance.

"This box contains bottles of the fancy grade of jelly."

It could also mean anything more professional and worth paying more for.

"This is a fancy restaurant. I wonder what their prices are."

Overall, it is more common in BrE. In AmE it often means expensive and fashionable but more commonly it means: 

5. something overly done. You could say Harrods is too fancy for you, meaning too extravagant and too upscale for you. 

"I would go to the dance but it is too fancy for me."

6. pretentious; tacky; garish; gaudy, etc. Driving your white Escalade to order a bottle of Grey Goose at a club in New Jersey, all while wearing a glittery Bebe dress, is the essence of fanciness.

"Did you really just say that? Aw, you're so fancy."

It can also be used as a reaction to something. 

"That girl over there with the gold tube top and rhinestone hoops? Fancy!"

Expressed either positively or negatively, it can be used to react to almost anything at all but most often it is used for something awesome; cool; swanky; spiffy, etc.

A: "I'm so in love with Tommy." B: "Fancy!"
A: "OMG! Look at dis amazing hair piece I just bought." B: "Fancy!"

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