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Have a look in your trunk. Lift the carpet and find the wiring harnesses that go through the metal plate in the left side of the trunk floor, up in the raised forward section of floor.
One wiring harness is for your speedometer pickup on the differential. The other harness is for the functions related to the fuel sending unit: Power to the in-tank pump, ground, and the fuel gauge sending unit.
Check the plugs to make sure everything's secure and clean. Remove the plate (not sure in 1990 if it's phillips head screws or Torx). It's glued down with some sealer as well if it's never been opened.
Below the plate (you'll want a flashlight) you can see the top of the fuel tank. There's a round ring holding down a flat plate with a bunch of steel tubes and a wiring harness coming through it. It will be all rusty and probably have sand and grit on it as well, but when it was new it looked like this:
http://www.fcpeuro.com/products/volvo-fuel-tank-sending-unit-kit-240-260-1367253kit
Inspect the condition of all your wiring up to the top of the tank, and report back with any findings.
Good luck!
--Rob
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