estábamos peleando

we were arguing

→ estar
phrase Rare #49,841
we were arguing Can also mean “we were fighting” physically, depending on context.
SP: Estábamos peleando por dónde ir a cenar.
EN: We were arguing about where to go for dinner.

Claro, porque estábamos peleando sobre quién tuvo el peor fin de semana.

Right, because we were arguing about who had the worst weekend.

— Toni Erdmann (2016)

Sí estábamos peleando.

Yes, we were fighting.

— Familia (2023)

Ni siquiera puedo recordar sobre qué estábamos peleando.

I can't even remember what we were fighting about.

Cuando llamaste estábamos peleando.

When you called, we were fighting.

— Volver (2006)

No estábamos peleando.

We weren't fighting.