Both refer to how a person thinks of his or her self. However, gender identity is the aspects of oneself. This can reflect how one dresses, acts, thinks, feels, and how they relate to others, either sexually or nonsexually. Sexual identity is your gender preference, sort of speak. However I found many sites that couldn t place where transsexuals fit in.
Many people confuse transsexuals with homosexuals, especially with male homosexuals in drag.
Actually, transsexuals are persons who have a deep, unshakable conviction that their true gender identity is out of synch with their anatomical sexual identity. Transsexuals feel trapped in the wrong body. Some people consider transsexuals to have a gender identity disorder. Because the person presents themselves as a member of the opposite sex, thus affecting their self-concept. It also affects the perception of a partner, the display of femininity or masculinity through mannerisms, behaviors, and dress.