A blast was heard close to the junction of North Circular Road and Levin Road shortly after 3pm on Saturday.
A PSNI spokesperson said officers were in the area at time after they were made aware that an unnotified parade was to take place.
There are no reports of any injuries.
John O'Dowd, Sinn Féin MLA for Upper Bann, said a device was detonated inside a bin close to homes and a school.
He said: "We are thankful that this bomb did not injure anyone but it could easily have been a different story.
"These individuals continue to show complete disregard for the public. The planting of this device along a busy road on one of the busiest days of the year was not only callous it was stupid.
"To time it to go at the same time as they began an Easter Parade demeans those patriots who they claim to honour and jeopardised their own supporters making their way to the parade."
His party colleague Mr McGuinness also voiced his concerns about the incident on Twitter.
He described the attack as "futile", adding that it was carried out by "anti peace extremists living in a fantasy world".
Alliance Policing Board member Trevor Lunn said: "I am shocked at what appears to be an attempt to target police officers. The vast majority of the public will be outraged at this attack.
"The people responsible have no place in our society. There can be no justification for any attempt to bring violence onto our streets."