I suppose it would depend on what is in the pounce powder you are using, you could be allergic to one of the ingredients, but might be fine with another brand. I don't recognise the term 'iron off' so it must be an american product, that said, I haven't looked to buy pounce - the first time I needed it I made my own using ground up dried cuttle fish (bought from a pet shop) half of which I dyed with ink for a dark pounce. And since then I have used tailors chalk dust, which is a by-product of sharpening my tailors chalk into a small tin when I am drawing up patterns (clothes).
It does sound as if you are sensitive to the pounce you are using, and if you can find an alternative it would probably be sensible, before your reactions to it get worse. Sorry I cannot help any further.