Clean up the channel by drawing closed paths around any areas the levels missed. Make a selection and paint out any background areas using a white brush. Invert the selection and paint remaining areas within the figures with a black brush. Next invert the channel (by default, white areas are selected). Cmd/Ctrl and click the channel. Change Contract to 3px and feather by 1px, target the composite RGB channel and copy it.
Paste this into your Photoshop document at the top of the layer stack and scale/position as shown, defringe by 1px and name it 'Figures'. Clip a levels adjustment layer and set the midpoint slider to 0.77 and the white point slider to 161. In the next step you’ll be adding a ‘hand-tint’ effect, so add a normal Hue/Saturation adjustment layer, setting the saturation to -40.
Load the Retro_colours.act swatch, create a new layer above the Hue/ Saturation layer and name it Figure tint. Set the Blending Mode to Color and adjust the Opacity to 55 per cent. Generate a selection from the figures layer and use the swatches to tint the figures. Invert the selection, add another layer in Colour Mode and tint the background. Use selections from your other layers and channels to erase areas.