Tested this on PO with PokemonBlack10 (CREDITS, PEOPLE!), and Magic Bounce and Magic Coat will not block Psycho Shift. Cresselia will be able to transfer her burn to the opposing Pokemon. Here are the PO battle scenes. Bold=Magic Coat. Italicized=Magic Bounce
Start of turn 1
INversion's Grumpig used Magic Coat!
INversion's Grumpig shrouded itself with Magic Coat!
Cresselia used Psycho Shift!
But if failed!
Cresselia's Flame Orb activated!
Cresselia was burned!
Start of turn 2
INversion's Grumpig used Magic Coat!
INversion's Grumpig shrouded itself with Magic Coat!
Cresselia used Psycho Shift!
Cresselia moved its status onto iNversion's Grumpig!
INversion's Grumpig was burned!
INversion's Grumpig is hurt by its burn!
Cresselia's Flame Orb activated!
Cresselia was burned!
Start of turn 1
INversion's Espeon used Calm Mind!
INversion's Espeon's Sp. Att. rose!
INversion's Espeon's Sp. Def. rose!
Cresselia used Psycho Shift!
But if failed!
Cresselia's Flame Orb activated!
Cresselia was burned!
Start of turn 2
INversion's Espeon used Calm Mind!
INversion's Espeon's Sp. Att. rose!
INversion's Espeon's Sp. Def. rose!
Cresselia used Psycho Shift!
Cresselia moved its status onto iNversion's Espeon!
INversion's Espeon was burned!
INversion's Espeon is hurt by its burn!
Cresselia's Flame Orb activated!
Cresselia was burned!