1. Create an empty layer above the background layer, make a rectangular selection, then go to select -> modify -> smooth and set it at about 12.
2. Then make a gradient from blur to light blue and drag it inside the selection.
3. Still having the rectangle selection, make a new empty layer and go to Edit -> stroke and give it a drag stroke with about 4 px.
4. Give the new layer a gaussian blur at about 1,5 as in the image below. Filters -> blur -> gaussian blur.
5. Make a new layer and name it reflection, then hold down Ctrl and click the rectangle layer to get the selection.
Grab the rectangle selection tool with intersect with selection mo deselected. Drag over the rectangle selection as shown below. Then choose select -> modify -> contract and contract it with about 8 px.
6. Make a gradient as the first image below and drag it over the new selection, now go to Filters -> blur -> gaussian blur and make it look like the reflection in the image below, I blurred it with about 4.
7. Below I used the Edit -> transform -> wrap tool to customize the reflection a bit on the left side.
8. Make a copy of your reflection layer, right click the top reflection layer and choose merge down, now the reflection should be more white.
Set down the reflection layers opacity to about 80.
9. Now make a new layer between the rectangular shape layer and the reflection layer, in this layer you can make what ever shape you want the icon or button to contain, I chose a V with a gradient and some layers styles such as drop shadow, bevel and emboss.
10. Also give the rectangle layer a drop shadow as in the image below.
