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There's a test for exactly this in the simulator testsuite:
https://github.com/adapteva/epiphany-bi ... /hwloops.s

Did you try to run your program with e-run --trace, alternatively passing 'sim trace' to e-gdb?

Unfortunately it looks like the instruction the $le register points to is not executed when stepping through the program with 'stepi', or setting a breakpoint at it.
But note that the breakpoint is hit, although gdb reports the wrong address.
Not sure if this is easy to fix, seems we need to tell GDB that the instruction at $LE was in fact a branch instruction, dynamically. Hope I'm wrong otherwise ugh!

// Ola