It was the Germans that went ahead in the 29th minute through Marie Mavers who scored past Maddie Hinch but England fought back and grabbed an equaliser from Giselle Ansley on the stroke of half-time.
With the scores level at the break it was all to play for in the second-half but Germany were ahead again in the 51st minute when Mavers added her second of the game and restored her side's lead.
England then heaped much pressure on their opponents with a string of penalty corners but were unable to make the breakthrough and have one game remaining to try and qualify out of Pool B.
Scotland's women suffered a similar fate in their clash with Spain and slumped to a 2-1 defeat courtesy of two goals from striker Maria Gomez.
Gordon Shepherd's side got off to the worst possible start when they were behind after just 60 seconds after Gomez swept home a Carlote Petchame pass.
Scotland responded through Nikki Kidd's unstoppable drag-flick to level things up but in the 27th minute Gomez bagged a second from close range and that is how it stayed.
Scotland and England will face off in the final Pool B fixture on Tuesday in what will be a hotly- contested all-British affair.