This is how the fold would look if erased.  You may also do better if you drop the Opacity of the Eraser down to 50.  And zoom in to see how you are erasing.  It is a bit tricky if you aren't used to using the eraser to alter parts of images.  Now I will present the quick way.  You can compare this image to the final one of this page to see the difference.

Click on the Selection tool and select the left side of the fold, the white part.  Delete it.

Slide the fold layer onto the towel, meeting at the right edges.
Go to Layer Properties and change the Opacity to 40.

Trim any excess fold on the top or bottom.
And here is the quick and simple fold. The rest of the towels should be easy now.

 

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