Sterling slides after shock contraction in UK GDP

* Sterling slides more than 1 pct vs dlr, euro on GDP shock

* UK Q3 GDP down 0.4 pct q/q vs forecasts for 0.2 pct rise

* Data reopen prospect of BoE expanding QE in November

(updates with fresh quotes, prices)

By Jessica Mortimer

LONDON, Oct 23 (Reuters) - Sterling fell by more than 1 percent against the dollar and euro on Friday after data showed the UK economy contracted again in the third quarter, surprising most in the market who had expected growth to return.

British gross domestic product fell by 0.4 percent between July and September, way below analysts' expectations of a 0.2 percent rise, making the current recession the longest on record with six successive quarters of contraction. [ID:nONS004554]

The shocking numbers were enough to drive sterling to the day's lows against a range of currencies. It had earlier hit a six-week high against the dollar, buoyed by expectations of firm GDP data.