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I had a similar problem about a year ago with my 86 740 GLE . It was running fine then it just decided not to start (although it was turning over ok).
It turned out to be the Fuel Pump Relay. This was diagnosed by the fact that no fuel was being pumped out from the inlet hose at the base of the fuel filter.I believe this componant failing is a common problem with this model. By the way the fuel filter on my 740 GLE 4 cylinder non-turbo is on the left hand side of the firewall(viewed from divers perspective on Right hand drive car). It is a fairly substantial cylindrical device. However, from the sudden nature by which the problem materialised I would doubt that the fuel fiter is suddenly obstructed - this tends to happen over time.
I hope this helps - good luck with it.
Arthur
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