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I think, it's funny how some wrote, Gretchen and Gretel would be fine, if you're german.
As a German, I'd say: Only Greta is fine. Gretel is a very outdated nickname, which makes pretty much everybody think of "Hänsel und Gretel").
Gretchen ... well, -chen is a diminutive, but I barely hear it used in names. Gretchen sounds pretty american to me. In Germany I only know it (as a nickname) from Goethes "Faust" and the so called "Gretchenfrage".