He said to me, “I was observing you at the party.” Change into Indirect Speech
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Indirect Speech: He told me that he had been observing me at the party.
Explanation: When the reporting verb is in the past (said) and the direct speech is in the past continuous tense, then the indirect (reported) speech will change into the past perfect continuous tense.
Past Continuous Tense > Past Perfect Continuous Tense.
Learn Narration
He said to me that he was observing me at the party