Is this possible?
You mean a gif? -> no that’s not possible. Instead you have to import a flipbook texture or individual pictures 
I dont know how Photoshop exports its animations yet. Will have to look into that.
It looks like Photoshop exports animations to several formats:
(://helpx.adobe/photoshop/using/saving-exporting-video-animations.html)
QuickTime export file formats (Photoshop Extended CS5)
3G
A file format developed for third-generation mobile devices.
FLC
An animation format for playback of computer-generated animations on workstations, Windows, and Mac OS. This format is also referred to as FLI.
Flash Video (FLV)
Adobe® Flash® Video is the Adobe format for streaming audio and video over the web and other networks. (To use this format, you must first install an FLV QuickTime encoder).
QuickTime Movie
The Apple Computer multimedia architecture that includes a number of codecs. (To export audio, you must use this format.)
AVI
Audio Video Interleave (AVI) is a standard format for audio and video data on Windows computers.
DV Stream
A video format with intraframe compression that uses FireWire (IEEE 1394) interface to transfer video to nonlinear editing systems.
Image Sequence
A sequence of still images that can reside within one folder and use the same numeric or alphabetic filename pattern (such as Sequence1, Sequence2, Sequence3, and so on).
MPEG‑4
A multimedia standard for delivering audio and video streams over a range of bandwidths.
With most of those export files, you could either use After Effects / Quicktime Pro to convert them to an image sequence and then use the program GlueIt to create a Flipbook texture to use with a Flipbook node in the Material editor!
Alternatively, you can export to .MP4 and use the Media Player Framework.
I made this um, topdown Super Mario that I keyframed in Photoshop. Will UE trigger the keys when I play the game if I Quicktime Pro > GlueIt > flipbook?
Should do! I wrote about it (Even though it’s quickly getting outdated now!) in my free book (Book #1), which you can read at ://www.kitatus.co.uk
If you created a animated main menu screen button in photoshop then save it as a png, will UE play the animation when I drag the button into a scene? Or should I be creating the button animations in UE and by pass photoshop? or should i be using a different software to create animated menu buttons? Looking for some solid feedback thanks.
This UE4 plugin allows you to import animated GIF into your Unreal Engine 4 project as a new AnimatedTexture asset type. AnimatedTexture can be used as normal Texture2D, supports UMG, Material, Material Instance and Dynamic Material Instance. AnimatedTexture has playback API.
Available for FREE on the UE4 Marketplace
Animated Texture with GIF Importer for Unreal Engine