Event: Your Upper Object -> Is overlapping another object -> Your Object below
Action: Your Object below -> Toggle Boolean (true)
-> Else: Toggle Boolean (false)
Then take that Boolen as another condition to your touch event, so it only takes place when that boolean is true:
Condition: Your Object below -> Is boolean instance variable set
This condition will check if its true, if you want to check for false you have to invert that condition.