Knock
the background and drag the cutout to the main file.
Since
color of girl's clothes are very similar to the background color, we'll
change the clothes' color to differentiate it from the background. Press
Ctrl+U to open hue/saturation window. Apply settings as shown.
From
filter menu select Liquify. Select forward warp tool and adjust hair and
clothes areas.
Duplicate
the layer. From filter menu select blur>>motion blur. Apply settings
as shown.
Hide
the original layer.
Press
Ctrl+U to open hue/saturation window. Apply settings as shown.
Reduce the opacity to 50%.
Unhide
the original layer and change the layer mode to overlay.