Power steering pressure sensor?

In the photos is that a pressure sensor or switch? It appears to have melted. It's a 5.4l and I read it doesn't have one. The steering works okay, and the pump was replaced. The connector tied up doesn't plug into anything. It was tapped into the harness. The three wires are gray w/red stripe, white w/black stripe and green. I was told that the tied-up connector had some sort of cap on it with a fuse. When the fuse was in the truck it wouldn't run. I don't see any sort of cap or fuse. Are these three wires supposed to go to a pressure switch? Any ideas about all this would be appreciated.