In this work, a novel diaphragm based pressure transducer with high sensitivity is described, including the physical design structure, in-depth analysis of optical response to changes in pressure, and a discussion of practical implementation and limitations. A flat circular rubber membrane bonded to a cylinder forms the body of the transducer. A fiber Bragg grating bonded to the center of the diaphragm structure enables the fractional change in pressure to be determined by analyzing the change in Bragg wavelength of the reflected spectra. Extensive evaluation of the physical properties and optical characteristics of the transducer has been performed through experimentation, and modeling using small deformation theory. The results show the transducer has a sensitivity of 0.116 nm/kPa, across a range of 15 kPa. Ultra-low cost interrogation of the optical signal was achieved through the use of an optically mismatched Bragg grating acting as an edge filter to convert the spectral change into an intensity change. A numerical model of the intensity based interrogation was implemented in order to validate the experimental results. Utilizing this interrogation technique and housing both the sensing and reference Bragg gratings within the main body of the transducer means it is effectively temperature insensitive and easily connected to electronic systems.