Now I know that rainbows are formed due to refraction of light from the sun hitting raindrops and light waves leave at varying angles between 40-42 degrees or somewhere around there. Also, that they’re round.
What I don’t understand is how it’s consistent, like I assume it’s hitting many raindrops, but all these drops are in different places so why does it still form a nice circle. Furthermore, why isn’t the whole sky a rainbow if it’s raining and thus hitting all the drops. I suspect the angle of the sun is playing a part but I’m not a science man.
It works that way because as you said, it only appears at a certain angle between the sun and your view.
As you move, so does the rainbow. Because the place in the sky that matches that angle, also changes.
So it is happening everywhere the rain falls into direct sunlight. You only see it in one spot, because that's the one spot that matches the angle for you specifically.
This is why we are in the centre because that’s the right angle to see it, and it being a circle is because again we are in the centre so it spans evenly. Is that correct?
Yes. And it's rare on cloudy days because the rainbow only works if you have a point-source of light. Clouds diffuse the light so instead you get an infinite amount of rainbows, all overlapping back into white.
I recommend you find a garden hose nozzle with a mist option. See the circle rainbow, taste the circle rainbow, hunt the double rainbow, find the rearward rainbow. go crazy.