What is the best way to avoid using goto statements in the pesudocode for an algorithm? What is the best way to avoid using goto statements when writing the pseudocode for an algorithm?

I want to avoid it and use another way to replace it.
In many cases, GOTO statement can be replaced by loops. For example, in your case, the inner loop is just "while string(i) = path(j), decrease both i and j", and the outer loop is a "loop forever", also known by the C idiom "while true".