Well it's hard to edit because I don't know what the object is, but I cleaned it a bit.
Didn't change the colors (Edit: I actually changed the yellow so it had some more contrast with the darker one), but I added a third yellow color for the middle part for separating each yellow stripe (it looks like crap but I'll leave it like that) because I'm not a fan of "outlines" inside the sprite.
The part where the yellow arrow is pointing to looked weird because there were more outline than actual object (I don't mean it can't work, but in this case I think you can make it a bit bigger so it looks better).
I changed the single pixels in the handle to simple shapes so it doesn't look so noisy and added a bit of autoaliasing to some other parts but I didn't put a lot of thought to it
I'd like to know what it's supposed to be. I guess I don't know it because I would recognise it, but I'm curious about it.