He did tell me today..(not that I believe him.) that there has been nothing between them..no touching, kissing, intimacy..etc.
She told him she has moved on. I dont really believe that..why would she let him stay on her couch? As a friend? puleez.
They're both lying. When he does this to you, you should put your hand up in the "stop" position and say "STOP IT. We both know you're lying right now, so please just STOP IT. I can't stop you from doing what you seem hell-bent on doing, but I can certainly ask that you stop disrespecting me with all of your lies. I will no longer listen to them."
And then leave the room (or find a reason to hang up if you're on the phone) -- preferably some GAL reason.