Formal:
* Je pensais que vous parliez anglais. (This is the most literal translation and the most formal.)
* Je croyais que vous parliez anglais. (This means "I believed that you spoke English" and is also quite formal.)
Informal:
* Je pensais que tu parlais anglais. (This is a more casual version of the first option, using the informal "tu" instead of "vous".)
* Je pensais que t'parlais anglais. (This is even more informal, using a slang contraction of "tu parlais".)
* J'croyais que tu parlais anglais. (This is an informal version of the second option.)
The best way to say it would depend on the specific context and your relationship with the person you are speaking to.