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1991 740 Overdrive locked out 700 1991

I have a 1991 740 with only 127,000 miles. Yesterday when I started it, the arrow overdrive indicator light on the dash lit up and stayed on. I touched the overdrive button several time but it would not go off. I also restarted the car several times thinking this would help. It did not. When I drove on the highway, the car would not shift into overdrive. It rpm’s would rev, but it would not shift. On the last few weeks, I noticed that the car was shifting hard. Not as smoothly as in the past and the gas mileage has dropped of significantly.

What help and or suggestions can you offer on how to start to fix this?

Thanks for your help






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