Patterned, longitudinally and transversely antiferromagnetically exchange biased GMR sensors are provided which have narrow effective trackwidths and reduced side reading. The exchange biasing significantly reduces signals produced by the portion of the ferromagnetic free layer that is underneath the conducting leads while still providing a strong pinning field to maintain sensor stability. In the case of the transversely biased sensor, the magnetization of the free and biasing layers in the same direction as the pinned layer simplifies the fabrication process and permits the formation of thinner leads by eliminating the necessity for current shunting.