This pencil holder is based on lyra sized pencils (much fatter than regular sized colour pencils). However you could easily adjust the size and use the same technique for regular pencils or even other stationary like pens, textas, paintbrushes ect. The colours I used are specifically matching the waldorf pack of 12 Lyra Ferby pencils. I have just bought some cheap "jumbo pencils" for illustration puposes.
Step 1: Choosing colours
I have chosen colours that correspond with my chosen pack of pencils. The first step is to cut 1.5 inch strips between 14-17 inches long of all the central colours and 2.5 inch strips of the same length of the two end colours (dark brown and lemon yellow). I have made all of my strips different length because I like the almost skyline affect. However this isn't necessary so feel free to make them a uniform length as long as that length is in the 14-17 inch perimeter.
*Note: in second picture the 2.5 inch lemon strip is missing but should be there.
Step 2: Piecing
Now strip-piece the strips together ensuring any selvage is at the top edge and that the top edge is straight. When sewing together two strips of different length do not continue sewing past the shortest one as this will eventually show in the finished wrap. Use a 1/4 inch seam allowance so that final space between seams is 1 inch. Secure your stitches at the bottom edge with a few stitches in reverse.
Step 3: Pressing
Press the seam allowances towards the darker colour gradient (away from the yellows). When a long strip follows a short one press a straight line down to keep the edge straight. Finally fold over and press about a centimetre (whatever covers the selvages) of hem at the top edge.