Hello,
Without clinical examination,it is very difficult making a diagnosis,but you symptoms are suggestive of urticaria or hives,atopic dermatitis or eczema, sweat dermatitis or heat rashes or contact dermatitis.
Treatment includes oral antihistaminics like benadryl or Claritin or zyrtec and topical application of corticosteroids.You may try application of calamine on the affected site. It may work by soothing the skin.Severe cases may need oral steroids. Try keeping cool as urticaria may tend to flare up in warmer conditions. In particular, keep the bedroom cool at night. You should take a comfortably cool bath and wear smooth-textured cotton clothing. Covering the affected area with bandages and dressings can help protect the skin and prevent scratching. You should choose mild soaps without dyes or perfumes and use a mild, unscented laundry detergent when washing clothes, towels and bedding.
Also avoid cats for some days as cat allergens can be responsible for these rashes. Cat allergen, the allergy causing material from cats, is not cat hair, but rather a protein present in the dander and saliva of cats. These allergens become airborne as microscopic particles, which when come in contact with a susceptible person cause an allergic reaction.
If the symptoms become severe,then pls consult a dermatologist as chronic urticaria has to be ruled out.
Hope it helps.take care and pls do keep me posted on how you are doing and if you have any additional queries.
I should also add that I do have dry skin at times and sensitive skin BUT I have not changed soaps, lotion, laundry detergent shampoo etc and for this very reason....