diff --git a/test/bytecode_2.6/08_while1_if_continue.pyc b/test/bytecode_2.6/08_while1_if_continue.pyc
new file mode 100644
index 00000000..51685e7d
Binary files /dev/null and b/test/bytecode_2.6/08_while1_if_continue.pyc differ
diff --git a/test/bytecode_2.7/08_while1_if_continue.pyc b/test/bytecode_2.7/08_while1_if_continue.pyc
new file mode 100644
index 00000000..eb9a7df4
Binary files /dev/null and b/test/bytecode_2.7/08_while1_if_continue.pyc differ
diff --git a/test/simple_source/looping/08_while1_if_continue.py b/test/simple_source/looping/08_while1_if_continue.py
new file mode 100644
index 00000000..3d72a7e8
--- /dev/null
+++ b/test/simple_source/looping/08_while1_if_continue.py
@@ -0,0 +1,9 @@
+# 2.6.9 text_file.py
+# Bugs in 2.6 and 2.7 detecting structure
+def readline (self):
+    while 1:
+        if self:
+            if __file__:
+                continue
+
+        return
diff --git a/uncompyle6/parsers/parse26.py b/uncompyle6/parsers/parse26.py
index 420a062a..51df0a32 100644
--- a/uncompyle6/parsers/parse26.py
+++ b/uncompyle6/parsers/parse26.py
@@ -145,7 +145,6 @@ class Python26Parser(Python2Parser):
         whileelsestmt ::= SETUP_LOOP testexpr l_stmts_opt jb_pop POP_BLOCK
                           else_suite COME_FROM
 
-
         while1stmt ::= SETUP_LOOP return_stmts bp_come_from
 
         return_stmt ::= ret_expr RETURN_END_IF come_from_pop
diff --git a/uncompyle6/parsers/parse27.py b/uncompyle6/parsers/parse27.py
index cacf206b..7bb94890 100644
--- a/uncompyle6/parsers/parse27.py
+++ b/uncompyle6/parsers/parse27.py
@@ -50,6 +50,8 @@ class Python27Parser(Python2Parser):
         withasstmt ::= expr SETUP_WITH designator suite_stmts_opt
                 POP_BLOCK LOAD_CONST COME_FROM
                 WITH_CLEANUP END_FINALLY
+
+        while1stmt ::= SETUP_LOOP l_stmts POP_BLOCK COME_FROM
         """
 
 
diff --git a/uncompyle6/scanners/scanner2.py b/uncompyle6/scanners/scanner2.py
index 56c57ba4..ee2072bd 100755
--- a/uncompyle6/scanners/scanner2.py
+++ b/uncompyle6/scanners/scanner2.py
@@ -439,7 +439,7 @@ class Scanner2(scan.Scanner):
                     # Is jump back really "back"?
                     jump_target = self.get_target(jump_back, code[jump_back])
                     if (jump_target > jump_back or
-                        code[jump_back+3] == self.opc.JUMP_FORWARD):
+                        code[jump_back+3] in [self.opc.JUMP_FORWARD, self.opc.JUMP_ABSOLUTE]):
                         jump_back = None
                         pass
                 else: