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I've never had much luck trying to pull a single wire in or out of an intact loom. One thing you might consider that would not look too horrible is just run an extra wire but enclose it in some of the old style woven loom.http://www.ebay.com/itm/3-16-Woven-Cotton-Fabric-Loom-/200709736825?pt=Vintage_Car_Truck_Parts_Accessories&hash=item2ebb3b8979&vxp=mtr

You could tape, add some clips or discreetly wrap it around in some way to the existing loom to make it look more or less like it was supposed to be there. Many places sell the loom although usually there is a minimum quantity of 10'.

Adding photos.
I used the heat shrink wire covers on my steering to relay wire (20) at the base of the steering column.
Have you done a no-power continuity check between each end of wire 20 to confirm that no electricity can get through?
Please take no offense because everybody knows this would be a mistake that I would do, but....Since you had everything around the engine apart, Are you absolutely sure you're connecting the right wire to the horn (black with red)?

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Good idea. Will check around to find a piece of matching color wire loom (any recommendations?). Picked up a tone tester today at Home Depot as I an determined to find where the break actually is. Thanks for the pictures,I did a continuity test on the wire in question as my final test after chasing this problem down. I can mix up wires as well as anybody but in this case it's hard to do as there are just 2 wires to the horn relay one hot, one ground and the other end of the ground was connected to the steering box wire from the horn ring. The wire ends at the bullet connector between the relay ground wire and steering box wire are in bad shape, wonder if the bullets can be heated and the solder melted to remove and install new wire ends. If not does anyone know of a source for these original type connectors?
In the mean time, have installed a jumper from the steering box wire and the relay ground terminal and the horn works fine.

Will check around to find a piece of matching color wire loom (any recommendations?).

Some of the repro loom places will duplicate the original braid as a service but probably not cost effective for that small length and single wire. If you mean the woven wire loom like shown in the ebay link (which only comes in that dark brown almost black as far as I know), then most of the repro wire places carry it. If they are within a reasonable driving distance, YNZ Yesterdays Partshttp://www.ynzyesterdaysparts.com/contact_us.htm are in Redlands and carry it -- and also have the cloth covered wire.

Want to let everyone know what a great tool the Tone tester is. Was able to pin point the wire break which was about 3"from the ground terminal on the horn relay. This was the part of the loom that curved up into the main loom. The principle of how the tester works is simple, it generates an electrical field between two unconnected parallel wires. As you follow the two wires with the "wand", when you come to the area of the wire break the "tone" volume falls off. The only down side is the Tone tester cost- $70.00! Thanks again for all the support.

What brand? And where did you purchase?
Thanks

Most unusual and glad you found it. Is the loom free to vibrate and flex at the break point? Am really wondering why the wire broke and if there are any others at that same point in a close to breaking condition. Can you secure the loom in some way?

The tester is a Fluke Networks pro 3000. Got it a Home Depot for $69.00. As far as the wire loom, it is looks and is positioned just like the one in the picture that Joe Santana posted. I would think, if there was failure due to vibration it would be where the two relay wires are bent and go into the main loom. You can see this in Joe's picture.