* Banks rebound, miners firmer on record gold price

* US unemployment reaches 26-1/2 year high

* Oil slides on demand worries

By David Brett

LONDON, Nov 6 (Reuters) - Britain's leading share index rose for the third day in a row on Friday, reversing earlier losses after the release of bearish U.S. jobs data, on a belief the sell-off had been overdone.

Led by banks and miners, the FTSE 100 .FTSE closed 17.08 points higher, or 0.3 percent, at 5142.72, for a weekly gain of 2 percent -- its best weekly performance for a month.

Data showed the U.S. unemployment rate rose to 10.2 percent, the highest in 26-1/2 years, as employers shed 190,000 in nonfarm payrolls in October. [ID:nN06178752]

The UK market initially turned negative on the data, while Wall Street opened lower and the dollar rose as investors turned risk averse.