A method for directional drilling of a wellbore includes automatically rotating a drill string having a steerable drilling motor at an end thereof in a first direction so that a measured torque related parameter thereon reaches a first value. The drill string is automatically rotated in a second direction so that the measured torque related parameter reaches a second value lower than the first value. A rate of release of the drill string is automatically controlled so that at least one of selected drilling fluid pressure and a range thereof is maintained.