Actually it is circular but usually the sun needs to be quite low in the sky for the angle of the sunbeams hitting the raindrops to be suitable to create a rainbow visible from the ground. But, when that happens, a part of the rainbow is cut-off by the horizon and so it appears semicircular.
Full circles are rare but have been seen/photographed.
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semi-circle
A 3D semi circle
No it is a irregular shape
In reality, the shape of rainbow is a circle. The center of the circle is an imaginary line between the center of the sun and the head of the viewer.
Because the earth blocks you from seeing the full circle. You can use a misting garden hose to make a rainbow, and you'll see it's a full circle.