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The cable is supposed to freely retract, even in the lovely weather you are getting. After awhile, these cables will start to stick due to wear and loss of lubricant. When this happens, upshifting will be greatly delayed. In extreme cases, upshifting will not happen at all. With the cable drooping as you describe, I am inclined to think you will not get an upshift. Hence, you will drive to work in only first gear. I had a similar problem with my '88 745T a couple years ago.
As for a solution, you are probably looking at a replacement. WD40 did not work, and I doubt another oil will not work. You need to get oil deep down into the cable in order for it to work. This is difficult to do. For now, you may have some improvement when the weather warms up and the stickiness deminishes. However, the ultimate solution is to have the cable replaced.
If you are you own mechanic, the cable runs about $90 from the dealer, plus tranny oil. While you are in there, you might as well replace the tranny oil filter and gasket if they have not been replaced yet. Replacing the cable is a bit of a pain, but doable. You need to drop the tranny pan, detach and remove the cable at both ends. Then install the cable. There is not a whole lot of room to work where the cable hooks up to the valve body in the tranny, but patience plus a book such as the Haynes manual will get you through it.
Good luck,
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