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To print the name of your currently checked out branch in your prompt, include this line as part of your PS1:

git branch 2>/dev/null | sed -e '/^[^*]/d' -e 's/* \(.*\)/ (\1)/'

A few people also asked about @patrickmckenna's Terminal.app theme. He uses ocean-terminal. His PS1 (prompt) is

export PS1="\[\$(tput bold)\]\[\$(tput setaf 6)\]\w\[\$(tput setaf 3)\]\$(git branch 2>/dev/null | sed -e '/^[^*]/d' -e 's/* \(.*\)/ (\1)/')\[\$(tput setaf 6)\] > \[\$(tput sgr0)\]"