This intermediate level tutorial needs some basic concepts of Adobe Photoshop and some knowledge about the basic tools used. First, open up an image on which you like to place a bubble. Now open Create a new Layer from the Layer Palette. Now take the Elliptical Marquee tool and select the area on which you would like the bubble to be placed. Now fill the selected area with the base color of the bubble. Open the Color Picker Window and pick a color nearing gray as shown
Use a paint bucket tool and fill this color. The next step is to add a layer style. Click on Add a Layer Style icon and select Inner Shadow and assign the settings for transparency.
Once the process is over, create a new layer. Clip the layer created by pressing ctrl + G. Then change the background color for using the gradient tool. In the Gradient tool, you may find the option of Reverse which reverts the foreground color. Make sure that the Opacity level is 100% before you use the Gradient tool.
Now add a Layer mask from the Layer Palette. And then revert the Background and Foreground colors. Select the Center Gradient tool for making the radial gradient. With the mask layer still active, create a radial gradient. This will make the bubble portion to enhance. You are now going to use the Layer Style tool. Select the mask layer and add Layer Style to it. The following properties can be changed to a desired value namely Inner shadow and Inner Glow.
Add more volume by brushing using the Brush tool and also by making the Gaussian blur. Then create a highlight by using Brush Tool with Hardness 100% at some corner of the bubble. Now use the Effects-->Blur-->Gaussian Blur tool and blur the portion and also add a Layer Style with an Outer Glow increased to a greater value.
Now you have to make a shadow of the transparent bubble to fall over the object. This is done by using the Layer style button. Transform the bubble with a new layer by Edit-->Free Transform. You can now arrive at a final image of bubble placed over the image with a shadow underlying. Certain Deformation can also be made to increase the effects but not compulsory.
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