We present a theoretical study on Co1-xCrx/Cu/Co (111) trilayers, where a transition from positive to negative giant magnetoresistance effect has been observed experimentally, with increasing thickness of the alloyed layer. The theory, based on a recently implemented conductance calculation, reproduces quantitatively this observation, and the effect is found to be caused by alloying effects, due to a virtual bound Cr d state in the majority spin channel of the Co-Cr layer.