Hello,
It definitely looks like an allergic reaction. Diagnosis of skin allergies includes Skin ***** tests (pricking the skin with a needle or pin containing a small amount of the allergen ('***** Testing' or 'Scratch Testing'), Patch tests (by applying a patch to the skin, where the patch contains the allergen.) and RAST.
You should get these tests done to identify the allergen and then avoidance along with antihistaminics and steroids is the main treatment.
It is very difficult to precisely confirm a diagnosis without examination and investigations and the answer is based on the medical information provided. For exact diagnosis, you are requested to consult your doctor. I sincerely hope that helps. Take care and please do keep me posted on how you are doing.
Seems like you will have to think about what you are in close contact with that's new. Animal, plant, fabric, something that is mostly touching the areas affected.