First, I traced 2 circles on a piece of cardboard, cut it out to resemble a hoop, and colored it in case any of the hoop shows through the pencils. You could also wrap the hoop in ribbon or paper, but I went the easy route.
Next, I decided on colors and a pattern for my pencils and started hot gluing them onto the hoop. Glue just the edge closest to the inside of the ring, as you'll be sliding your ribbon under the pencils as you weave, and cover up some of the cardboard hoop. Continue all the way around the hoop. If you use a thinner cardboard, like I did, it will be a little flimsy, but don't worry, the ribbon will provide some support.
Next, cut your ribbon and begin weaving it between the pencils. Slide the ribbon under every other pencil, between the pencil and hoop. I also used glue to attach the ribbon to the tops of every other pencil for more support. Once you finish weaving the ribbon, glue on the underside of the wreath.
Next, cut a length of ribbon to serve as the hanger. I chose to go a little shorter with my hanger. I then glued the two ends to the back of the hoop, and added another small piece of ribbon to secure the hanger.
I found my original inspiration at Out On A Limb: http://erinoutonalimb.blogspot.com/2011/09/sunburst-pencil-wreath.html
Have a great weekend!