A giant magnetoresistive (GMR) element includes a first antiferromagnetic layer, a pinned magnetic layer having a magnetization direction pinned by the first antiferromagnetic layer, a nonmagnetic material layer, a free magnetic layer having a magnetization direction with a central portion changing with an external magnetic field, a nonmagnetic layer, ferromagnetic layers formed on both sides of the nonmagnetic layer, and second antiferromagnetic layers for aligning the magnetization direction of the ferromagnetic layers perpendicular to that of the pinned magnetic layer. The magnetization directions of the free magnetic and ferromagnetic layers are antiparallel to each other. At least the free magnetic layer, the nonmagnetic layers and the ferromagnetic layers have continuous surfaces .alpha. at both end surfaces in the track width direction. First electrode layers are provided in contact with the continuous surfaces .alpha., and second electrode layers are provided on the first electrode layers and the second antiferromagnetic layers.