Hi, sorry to hear about your knee pain. It does sound like an IT band issue.
Do you use clipless pedals?
Earlier this year I experienced some pain on the outside of my right knee, but only when I went on longer rides (50 + miles). I adjusted the angle of the cleat on my right shoe ever so slightly so that my foot pointed outward a tiny bit more. Like I said, it was a very tiny adjustment, but it did the trick, toe-ing out just a tiny bit more relieved the slight pressure on my IT band.
2009 Lynskey R230 Houseblend - Brooks Team Pro
2007 Rivendell Bleriot - Rivet Pearl