It is not very widely known that Finder has its own browsing history, just like Safari does. When you click and hold Next or Previous button in Safari, you get the list of previously accessed websites. It works the same in Finder, showing you the list of previously accessed folders.
This works only in OS X Lion (10.7)
You can do it in Macosx prior lion with hold command and click on the title finder (i.e on picture above the title finder is “printer”)
Thanks Anthony, but that’s actually quite different. What you are suggesting will show you your current location, same as the location bar on the bottom (if you have it enabled). Click and hold back/forward buttons will show you history, where you actually were before, not where you are now.