The weekend and the first couple days of next week should be very generous to those hoping to catch the Northern Lights in Iceland.
Now that the curtain is falling on summer, actual nighttime has returned to Iceland and with it, the Northern Lights. For those hoping to see them, the Icelandic Met Office has a page devoted solely to aurora forecasts.
As can be seen, the greater Reykjavík area will see a fairly high amount of aurora activity this weekend. Activity will significantly increase on Monday evening, and is likely to continue through at least the first half of next week.
The Northern Lights are naturally best viewed far from urban population centres, but the auroras can still shine bright when seen from downtown. You can book tours specifically catered to viewing the Northern Lights, but you can just as well rent a car, or simply go for a walk downtown after sunset.
For a sample of the kind of aurora activity you can see in Iceland, check out this gallery of Northern Lights photos taken last March.