it’s hard to tell what you need without some sort of picture reference. But maybe you could do something like I have done here. These were two photos I did for a company. The both show movement. I’m not sure if its what your looking for though, take a look here The X looks likes is moving somewhat more of an electric kind of effect I did. Or here

here’s a link to an effect that might be helpful also http://www.graphic-design.com/Photoshop/motion_blur/index.html
or
http://www.photoshopessentials.com/photo-effects/motion-blur/

or there’s this blur http://www.tutorialsroom.com/tutorials/graphics/motion_blur.html

You might want to add the blur to the second pencil image before you paste it around the bowl. Check out this image

I copied the pencil image, pasted it to a new layer, adjusted the opacity, added a wind effect, adjusted the placement, then duplicated the layer and adjusted that third pencil images opacity and placement, then did it again.

I also skewed the last two images slightly to give more of the rounded effect. This was a quick mock-up, but if you spent some time on it you could get it to work just fine.

Use a brush in the shape of the pencil [unfortunately you will have to add color to image after brushes are greyscale and then blur either the color or the brushtrail or both

Those are all great responses but I think maybe I was not clear about the actual problem I am having. I have no trouble to make the blur or motion trail, add color etc. The issue I am facing is to give the blur that circular look. Right now it’s more left to right the blur. Picture a race car driving super fast around a race track, so fast all you see if a blur of color going in a circle. That would be kind what I am trying to do. I think they are all good responses you guys have though and appreciate the help :)

I think you need to be able to run the pencil-brush along an elliptical path. I know text can be run on a path, it seems a brushstroke should too—OR MAYBE YOU NEED TO USE FLASH