This phase is the second in the trading strategy of the banks. What happens here goes by many names. You probably know some of them. Are any of these familiar to you? False breakouts, false push, stop the hunt, and bull/bear trap.
During periods of consolidation, many retail traders make pending trades above or below the consolidation zone. They hope they will ride the breakout when it happens. Instead, a false breakout occurs. There is a temporary breakout that triggers their orders, then suddenly reverses direction to take out their stop losses. The banks are manipulating the market when this happens.