1. Start off with the Fade option. Increase this amount until the posterized effect disappears.
2. Adjust the Color Intensity to get the results desired. To get a neutral, washed-out effect, drag the input slider towards the left. To increase the vibrancy, drag the input slider towards the right.
3. The Luminance doesn’t need to be adjusted. It will only darken or lighten your photo. 
Final Results
Colors Styles by Photoshop Tutorial

Alternative Effect
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Very nice. Thanks for sharing.